Which of the following best describes economic efficiency?

Economic efficiency is best described as using resources to achieve the maximum output possible. This concept relates to how well an economy utilizes its resources, ensuring that production is optimized and waste is minimized. When an economy operates efficiently, it means that goods and services are produced at the lowest possible cost, reflecting an optimal allocation of resources where it is impossible to make one individual better off without making someone else worse off—often referred to as Pareto efficiency.

The notion of maximizing output with given resources involves not only the quantity produced but also the quality and value of the products in relation to the wants and needs of consumers. This principle underlies fundamental economic concepts like production possibilities frontiers, where the combination of goods produced demonstrates the most efficient use of resources.

Other options, while related to efficiency in some way, do not capture its essence as accurately. For instance, producing more of one good without reducing the production of another may describe a particular condition but does not fully encompass the broader concept of efficiency. Similarly, complete market control refers to monopolistic conditions rather than efficiency in resource allocation. Profit maximization pertains to individual firms rather than the overall economic efficiency of production and allocation in the economy.