What Is Economic Efficiency?

Economic efficiency is the abbreviation of socio-economic operating efficiency, which refers to the economic benefits that can be obtained on the basis of a certain economic cost. It is wrong to use "time" to measure economic efficiency. "Time" is only one aspect or part of economic cost, not the whole of economic cost.

Economic efficiency

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Economic efficiency is socioeconomic

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Efficiency = Product / (input labor + input resources + input tools)

This can refer to

Definition of economic efficiency

In the market, there are exchange ratios of various products, which we call the general exchange coefficient.

Economic efficiency formula

Exchange coefficient = product 1 / product 2

According to the previous efficiency formula efficiency = product / (labor + resources + tools),

If the two products have the same meaning (labor + resources + tools).

Production efficiency 1 = exchange coefficient * product efficiency 2

That is to say, we can know the production mode with the greatest economic efficiency under the same input through this proportion of the exchange coefficient.

Because in countries with paper money, paper money expresses the exchange coefficient of each product, and the exchange coefficient is also expressed in the form of price, so in a market economy country, everyone can find the most economically efficient production method by the market price.

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