efficiency

I'm not sure I spelled it out explicitly in class, but from our discussion I said there were several ways economists can use the term "efficiency." So from today's discussion, efficiency was being "on" the budget line. This implies you can't get more of one good without giving up some of the other good. A point inside the budget line is "inefficient" in the sense you can have more of one or the other or both goods without "giving up" anything, except the money (which you need to assume if it is unspent, it is "lost").

We will consider other ways we can make use of the term efficient.

Good luck using your time efficiently. I'm certain, and assume, you do that. Just beware of your opportunity cost. Oh, and sometimes alcohol can inhibit your assessment of your opportunity cost. Be careful out there.

;-)

JJ