End of efficiency in economics
Posted : 2020-12-23 16:15
By Robert Skidelsky
LONDON ― Economics is the study of economizing, or using the least amount of time and effort to produce the greatest amount of satisfaction. The more we can economize on the use of scarce resources, the more "efficient" we are said to be in getting what we want. Efficiency is a prized goal because it literally cheapens the cost of living. Cheapness in obtaining the goods and services we want is thus the key to a better life.
Efficiency lies at the heart of trade theory. In the early 19th century, the economist David Ricardo argued that each country should concentrate on making what it could produce at the lowest relative cost.