ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Efficient allocation of resources results in the fulfillment of many needs and wants of the society because when there is a proper allocation, the resources can be saved for future use.

Detailed explanation-2: -Fulfilling many needs/wants of society will be accomplished when efficient allocations occur towards the factors of production.

Detailed explanation-3: -In free market economy, the most efficient allocation and use of resources is attainable as the decision making in this economy is based on market mechanism.

Detailed explanation-4: -Economic efficiency implies an economic state in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Detailed explanation-5: -Therefore, you could argue that labor is the most crucial factor of production. For example, German philosopher Karl Marx puts human effort squarely at the center of economic production-with materials acting as the object of labor and equipment acting as its instrument.