Which term refers to producing goods and services that people most want, while keeping costs low?

The term that refers to producing goods and services that people most want while keeping costs low is economic efficiency. Economic efficiency occurs when resources are allocated in a way that maximizes the production of goods and services that satisfy consumer preferences. This includes producing a mix of goods and services that reflect consumer demand, ensuring that no resources are wasted in the production process.

Economic efficiency is crucial for ensuring that an economy operates effectively, as it helps maintain a balance between supply and demand. When producers focus on minimizing costs while fulfilling the needs and desires of consumers, they contribute to a more efficient allocation of resources, resulting in higher overall satisfaction within the economy.

In contrast, scarcity relates to the limited availability of resources compared to unlimited wants, total utility refers to the overall satisfaction received from consuming goods and services, and supply is concerned with the quantity of goods and services that producers are willing to offer at different prices. Each of these terms serves a distinct role in economics, but economic efficiency specifically encapsulates the idea of matching production closely with consumer demand at minimal cost.