A more thorough explanation:

Economic efficiency

Economic efficiency means using resources in a way that gives the most benefit. This is the most efficient way to use resources.

For example, imagine a company that makes shoes. If the company can make more shoes with the same amount of resources, then it is being economically efficient. This means that the company is using its resources in the best way possible to make the most shoes and earn the most money.

Legislators and judges also think about economic efficiency when they make rules and decide who should pay for things. They want to make sure that resources are used in the best way possible to help people.

Another example of economic efficiency is when a city decides to build a new road. The city wants to make sure that the road is built in the best place possible so that it helps the most people. They might look at how many people will use the road and how much it will cost to build it. This helps them make an economically efficient decision.

Overall, economic efficiency is about using resources in the best way possible to help people and make the most benefit.