Question

The efficiency of an economic system is a measure of

Answer 1

The efficiency of an economic system is a measure of how well off the people of the economy.

In other words, the efficiency of an economic system is a measure of how well every resource is allocated among the people of the economy and from this allocation of resources how well the economy's people are.

Economic system is a system of production, resource allocation, and distribution of goods and services within a society or a given geographic area. So efficiency of the economic system is measured by how well the economic system is functioning I.e., how well the allocation of resources or distribution of goods and services are to be done so that the people of the economy are well off.