Question

Give economical term - Producing maximum possible amount of goods and services from the given amount of resources ​

Answer 1

Explanation:

Production possibilities of an economy refer to different combinations of goods and services which an economy can produce from a given amount of resources and a given stock of technology.

Answer 2

The economical term use for producing the maximum possible amount of goods and services from the given amount of resources is called Efficiency in production.

When the production efficiency is achieved, the maximum producing level has been reached and thus it can be calculated by dividing the total output rate by the standard output rate.

A firm after attaining the maximum production level cannot produce any additional amount of goods or services without sacrificing the other.

In Mathematical terms, we can write as,

Production Efficiency= Actual output rate/Standard Output rate×100

Following this condition, all the resources allocated will be utilized to their best use and hence reduce wastage.

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