Final answer:
Producing goods and services with minimal resources and time is referred to as efficiency. Economic efficiency is about maximizing production and getting the most benefit from scarce resources, which is demonstrated on the production possibilities frontier.
Step-by-step explanation:
Producing goods and services with as few resources as possible in as little time as possible is referred to as efficiency. In economic terms, efficiency ensures that available resources are utilized effectively to yield the maximum output of desired goods and services.
All choices on the production possibilities frontier demonstrate productive efficiency, indicating that resources are allocated in such a way that an increase in one good's production is not possible without reducing the quantity of another good. This scenario emphasizes an economy's ability to maximize its production capabilities and organizes its resources to avoid waste and redundancy.
An efficiently organized economy also aligns with allocative efficiency, which refers to choices that are socially or personally preferred, ensuring that the allocation of resources corresponds to consumer preferences.