Economic efficiency


Economic efficiency involves three efficiency:
i) Efficiency in production: - Efficiency in production means producing maximum possible amount of goods from the given amount of resources.

ii) Efficiency in consumption: - Efficiency in consumption means distribution of produced goods and services among the people for consumption, in such a way as to maximize total satisfaction of society.


iii) Efficiency in the direction of production i.e. overall economic efficiency: - Efficiency in the direction of production means production of those goods which are most desired by the people.