Changes

"Efficiency" is an economic term that means the best use of a resource. An efficient use of an hour of studying is one that acquires the most knowledge possible in that hour.

"Efficiency" is an economic term that implies optimal production/consumption of all goods.

 

Pareto efficiency defines the optimal state as one wherein no one can be made better off without someone being made worse off.

 

Kaldor-Hicks efficiency defines the optimal state as one wherein all marginal benefits divided by respective prices are equal. (That is, no transfer of production inputs between goods will achieve a better outcome.)

[[Category:Economics]]

[[Category:Economics]]