What IS Economic Efficiency??
Because we live in a world that faces scarcity, people must constantly think of the best way to use our limited resources and factors of production to improve America's economic efficiency. This allows us to push our production, and therefore, profits to the max!
This Production Possibility Curve represents what a certain economy can efficiently produce with their resources and technology, given that the technologies used remain the same and all resources are used to maximum efficiency.
Learn about the breakdown of the economy, and how people go about using the principles of Economic Efficiency. Please enjoy this educational gem.