Question

Technical efficiency:

Group of answer choices

means the same thing as economic efficiency

has nothing to do with labor intensive inputs

is that method that produces a given level of output at the lowest possible cost

means that as few inputs as possible are used to produce a given output

Answer 1

Answer. (d) means that as few inputs as possible are used to produce a given output

Explanation: Technical efficiency is a situation where the aim is to produce maximum output using minimum inputs. In other words it could be mentioned as the least number of inputs that would be needed to produce a given level of output. Inputs could be land, labour, capital, etc. Thus because of technical perspective of "inputs" it is called technical efficiency. Economic efficiency would instead concentrate on costs, profits and other aspects as well.