{"id":1842,"date":"2021-04-29T17:04:43","date_gmt":"2021-04-29T17:04:43","guid":{"rendered":"https:\/\/enorcerna.com\/wiki\/what-is\/economic-efficiency\/"},"modified":"2021-04-29T17:04:43","modified_gmt":"2021-04-29T17:04:43","slug":"economic-efficiency","status":"publish","type":"post","link":"https:\/\/enorcerna.com\/wiki\/what-is\/economic-efficiency\/","title":{"rendered":"Economic efficiency"},"content":{"rendered":"
\n

What is economic efficiency?<\/h2>\n

Economic efficiency refers to the skill with which an economic system uses its resources, efficiently, to achieve maximum production of goods and services.<\/strong><\/p>\n

One system will be more efficient than another if, using the same resources, it is capable of providing more goods and services.<\/p>\n

\"Economic<\/p>\n

Characteristics of an efficient economy.<\/p>\n<\/div>\n

Advantages of economic efficiency<\/h2>\n

The main advantages of economic efficiency are the following:<\/p>\n

    \n
  • Important production improvements<\/strong>.<\/li>\n
  • Higher production at lower consumption.<\/strong><\/li>\n
  • Progress of the technical efficiency<\/strong>.<\/li>\n
  • Replacement of old processes<\/strong> by new methods that generate greater production.<\/li>\n
  • Increased profitability and profits<\/strong> obtained, since using fewer resources reduces costs.<\/li>\n<\/ul>\n

    Types of economic efficiency<\/h2>\n

    Economic efficiency can be classified into and<\/strong>productive, scale, social and technical efficiency.<\/strong><\/p>\n

    Productive efficiency<\/h3>\n

    It is obtained when, through the good use of efficient economics, a product uses the least amount of resources to produce a quality service.<\/strong><\/p>\n

    Scale efficiency<\/h3>\n

    Is about produce the exact without exceeding production<\/strong>.<\/p>\n

    Although when a greater quantity of a certain product is produced, the cost per unit falls, exceeding it on a large scale can generate some disorder and economic inefficiency.<\/p>\n

    Social efficiency<\/h3>\n

    It happens when the benefits of producing a certain good outweigh the negative effects <\/strong>that has its production within society.<\/p>\n

    Technical efficiency<\/h3>\n

    Consists in make good use of raw materials and labor,<\/strong> dedicated to the production of a good, to achieve the lowest possible cost of production.<\/p>\n<\/div>\n\n\n

    \n \n
    \n \n
    \n
    \n \n\n
    <\/div>\n <\/div>\n
    \n \n\n
    <\/div>\n <\/div>\n
    \n \n\n
    <\/div>\n <\/div>\n
    \n \n\n
    <\/div>\n <\/div>\n
    \n \n\n
    <\/div>\n <\/div>\n <\/div>\n \n
    \n
    \n \n\n
    <\/div>\n <\/div>\n
    \n \n\n
    <\/div>\n <\/div>\n
    \n \n\n
    <\/div>\n <\/div>\n
    \n \n\n
    <\/div>\n <\/div>\n
    \n \n\n
    <\/div>\n <\/div>\n <\/div>\n<\/div>\n \n\n
    \n Rate this post<\/span>\n <\/div>\n <\/div>\n","protected":false},"excerpt":{"rendered":"

    What is economic efficiency? Economic efficiency refers to the skill with which…<\/p>\n","protected":false},"author":1,"featured_media":1843,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1842","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-is"],"_links":{"self":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/1842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/comments?post=1842"}],"version-history":[{"count":0,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/1842\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media\/1843"}],"wp:attachment":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media?parent=1842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/categories?post=1842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/tags?post=1842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}