Final answer:
Economic efficiency is measured by output concerning resource input, using metrics like per capita GDP which can be imperfect. It's measured by organizations like the World Bank and the IMF, and standards such as the PPF illustrate productive and allocative efficiency. The 'green' GDP is an alternative that considers environmental impact.
Step-by-step explanation:
Economic efficiency is measured by comparing the output produced to the resources used. Different standards and metrics can be utilized, with one of the most common being per capita GDP. However, this measure is imperfect as it does not account for various factors such as income distribution, non-market transactions, or environmental sustainability, which can all affect living standards.
Organizations responsible for measuring economic efficiency include government statistical offices, international bodies like the World Bank and the International Monetary Fund, and various research institutions.
In terms of standards, the Production Possibility Frontier (PPF) is often used to represent the trade-offs between two different goods or outcomes, illustrating concepts like productive efficiency and allocative efficiency. To better assess environmental impacts, economists have proposed the concept of 'green' GDP, which adjusts conventional GDP by accounting for environmental damage and resource depletion. As for how we are doing, it varies by country and region, with ongoing debates on the adequacy of existing economic metrics to capture true well-being and sustainable economic practices.