9. Define technical efficiency and discuss how an increase in technical efficiency can improve living standards. (3 marks)

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Technical efficiency occurs when the nation is producing its goods and services in the best way possible, with minimum waste and at lowest . It is consistent with production occurring at peak levels. When this occurs, it means that and services are produced at the lowest possible cost and, providing markets are , is likely to lead to lower . As prices are lower, consumers are able to afford a greater bundle of goods and services, improving their living standards.