Whenever we talk about economics, we basically want to solve this problem:
So efficiency of an economy means how that economy uses those scarce resources in order to satisfy human wants in a manner as optimum as possible.
Obviously, if a country uses its resources in a best possible way, it should should lead to its citizens being more well-off than before.
- Unlimited wants
- Limited resources
- Alternative uses of resources
So efficiency of an economy means how that economy uses those scarce resources in order to satisfy human wants in a manner as optimum as possible.
Obviously, if a country uses its resources in a best possible way, it should should lead to its citizens being more well-off than before.