What does efficiency mean in economics? Give an example of an efficient way of using resources to produce goods and services.
Answer:
Answer by Student
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Efficiency means
using resources in the best possible way
to produce the most output with the least waste.
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An example of an efficient way of using resources is to
recycle paper and plastic
instead of throwing them away.
- Efficiency helps us to make the best use of our limited resources and satisfy more of our wants and needs.
Detailed Answer by Teachoo
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Efficiency means
using resources in the best possible way to produce the most output with the least waste.
This means that there is less wastage or loss of resources in production. For example, if we use 10 units of resources to produce 100 units of output, we are more efficient than if we use 20 units of resources to produce the same output. Efficiency helps us to make the best use of our limited resources and satisfy more of our wants and needs.
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An example of an efficient way of using resources is to
recycle paper and plastic
instead of throwing them away. This way, we can save trees and reduce pollution. Trees are important resources that provide us with oxygen, food, shelter, etc. Pollution is harmful for our health and environment. Recycling also helps us to produce new goods from old materials, such as making notebooks from used paper or making bags from plastic bottles. Recycling reduces the need for extracting new resources from nature, which can be costly and damaging.
- Efficiency helps us to make the best use of our limited resources and satisfy more of our wants and needs. This means that efficiency helps us to achieve more with less. Resources are limited because they are scarce and have alternative uses. Wants and needs are unlimited because they are the desires and necessities of human beings. Efficiency helps us to use resources in such a way that we can produce more goods and services that we want and need, and avoid wasting resources that could be used for other purposes. Efficiency also helps us to improve our living standards and well-being by providing us with more choices and opportunities.
