Tip of the Day 10: What Is Efficiency?
Economic Efficiency is a market equilibrium point where supply and demand meet in a perfectly competitive industry. In a world where perfect economic efficiency exists, everything that is produced or consumed is done in the way that maximizes society’s gross utility. When a market is efficient there is no net loss of utility to society, including either producer or consumer. The Fair Tax system improves the USA’s efficiency relative to the present system.