“There can be economy only when there is efficiency.” — by Benjamin Disraeli.

With
that statement, it already shows how efficiency important is. Efficiency is one of
the criteria to measure the effectiveness of the economic system. Efficiency is
about planning and organizing well the resources that we have to be able to provide
the needs and wants of the people. It is one of the criteria because it is very
important to maximize the output that we can do and get from resources that we
have. According to John buck, Economic efficiency occurs when a society obtains the
largest possible amount of output from its limited resources. Using the resources
wisely can give us the ability to do more output and provide satisfaction to the
people in the society.
In addition, we can say that a country's economic system is efficient if the
outputs are greater than the cost of inputs. According to Andrew Masigan, the
Global Competitive Report (GCR) is just one of the numerous indices that measure an
economy’s efficiency and sophistication. This is a yearly report published by the
World Economic Forum to give us an idea of where a country stands. The report in
2010 showed that the Philippines is on the 85th position out of 139 countries
ranked. For 2015, the Philippines rose to 47th position, but it slipped to 56th
position in 2017. This report assesses how efficient an economy is in using the
resources available to it, its level of productivity and its ability to sustain
economic growth. In particular, it looks into the state of a country’s
infrastructure, the strength of its government institutions, its macroeconomic
conditions, the quality of its primary and higher education, the efficiency of its
work force and the sophistication of its financial markets, among others.
We have four economic systems which are traditional, command, market and mixed,
hence there are also criterion to measure the effectiveness of these economic
systems. One of these is having efficiency. Efficiency is not the same with
effectiveness, because effectiveness is the ability to attain success in producing
your desired result while efficiency is about attaining the desired or highest
result with less input. Efficiency is effective in our economic system because it
helps in boosting our profitability, without efficiency one cannot maximize the
inputs that are given, and failing to maximize this inputs could produce less
output which could lead to an increase of price. Efficiency in an economic system
could greatly contribute in satisfying the human wants and need because it could be
more affordable, for example rice. Rice in the Philippines has many varieties like
dinorado, Jasmine, Bheng, Viva white and others. This rice has different prices,
but not all could afford it. But through efficiency NFA rice was produced.
Efficiency is present in this example because they produce rice with less input and
more output which leads to cheaper rice compared to others.
We have four economic systems which are traditional, command, market and mixed,
hence there are also criterion to measure the effectiveness of these economic
systems. One of these is having efficiency. Efficiency is not the same with
effectiveness, because effectiveness is the ability to attain success in producing
your desired result while efficiency is about attaining the desired or highest
result with less input. Efficiency is effective in our economic system because it
helps in boosting our profitability, without efficiency one cannot maximize the
inputs that are given, and failing to maximize this inputs could produce less
output which could lead to an increase of price. Efficiency in an economic system
could greatly contribute in satisfying the human wants and need because it could be
more affordable, for example rice. Rice in the Philippines has many varieties like
dinorado, Jasmine, Bheng, Viva white and others. This rice has different prices,
but not all could afford it. But through efficiency NFA rice was produced.
Efficiency is present in this example because they produce rice with less input and
more output which leads to cheaper rice compared to others.
“There can be economy only when there is efficiency.” — by Benjamin Disraeli. With
that statement, it already shows how efficiency important is. Efficiency is one of
the criteria to measure the effectiveness of the economic system. Efficiency is
about planning and organizing well the resources that we have to be able to provide
the needs and wants of the people. It is one of the criteria because it is very
important to maximize the output that we can do and get from resources that we
have. According to John buck, Economic efficiency occurs when a society obtains the
largest possible amount of output from its limited resources. Using the resources
wisely can give us the ability to do more output and provide satisfaction to the
people in the society.
In addition, we can say that a country's economic system is efficient if the
outputs are greater than the cost of inputs. According to Andrew Masigan, the
Global Competitive Report (GCR) is just one of the numerous indices that measure an
economy’s efficiency and sophistication. This is a yearly report published by the
World Economic Forum to give us an idea of where a country stands. The report in
2010 showed that the Philippines is on the 85th position out of 139 countries
ranked. For 2015, the Philippines rose to 47th position, but it slipped to 56th
position in 2017. This report assesses how efficient an economy is in using the
resources available to it, its level of productivity and its ability to sustain
economic growth. In particular, it looks into the state of a country’s
infrastructure, the strength of its government institutions, its macroeconomic
conditions, the quality of its primary and higher education, the efficiency of its
work force and the sophistication of its financial markets, among others.