Final answer:
True, being efficient in management means using resources wisely and cost-effectively, which involves maximizing production and minimizing waste by achieving both productive and allocative efficiency.
Step-by-step explanation:
True, to be efficient in management does indeed mean to use resources wisely and cost-effectively. Efficiency ensures that available resources are utilized to their fullest extent to produce goods and services that are most in demand. Economic efficiency is achieved when both productive efficiency (where goods and services are produced at the lowest possible cost) and allocative efficiency (where resources are apportioned in a way that aligns with consumer preferences and maximizes overall utility) are realized. When an economy is efficient, it is well-organized and maximizes production, thereby minimizing waste and making the most of scarce resources.
Productive inefficiency is a waste because it results in less output than what could otherwise be achieved with the same amount of resources. Similarly, allocative inefficiency is wasteful because it signifies that the resources are not being used to meet the actual demands of the people, so there's a mismatch between what is being produced and what is actually needed.