Agrarian Economy 2018 Т. 11 № 1-2:15-22
EFFICIENCY AS THE MAIN ECONOMIC CHARACTERISTIC OF THE PRODUCTIVITY OF PRODUCTION
K. Kukhta, PhD in Economics
T.Oroshan, Director of Lubny Financial-Economic College of Poltava State Agriculture Academy
https://doi.org/10.31734/agrarecon2018.01.015ANNOTATION
The article presents the main results of the study of the essence of the economic category of efficiency and its relationship with the notion of effectiveness. In the course of the study, it was found that uniqueness in the understanding of these characteristics in the economic literature is not observed. Efficiency by the majority of authors is considered to be the main characteristic of the effectiveness of production, and some of their part in general even identifies these two concepts. Efficiency translated from Latin means resultance. Effectiveness is also associated with the term "effect” as a result. The results of the research give grounds for concluding that as an economic category, the effectiveness characterizes the rate of returns from the use of certain resources and the pursuit of certain positive actions. In this context, efficiency can be regarded as a separate case of effectiveness, as the result of economic activity can have a negative aspect, and then there is no reason to speak of efficiency. It is determined, that the efficiency of agricultural production as a whole fits into the general concept of understanding the essence of this category, although it has certain features, that are objectively related to the dependence of this branch on natural conditions. It is substantiated, that economic efficiency is the basis of the formation of social efficiency, since the economic effect created in the course of economic activity is a source of satisfaction of the entire spectrum of social needs of the population. Therefore, there is an objective such dependence: the higher the economic efficiency, then, under the same other conditions, there will be higher social efficiency, and vice versa. At the same time, there is a feedback between these kinds of efficiency: the increase of social efficiency increases the productivity of workers, and, consequently, the economic efficiency of production, that is, there is a multiplicative lever. Further scientific research will be directed at the study of methodological approaches to the determination of the effectiveness of agribusiness objects and should provide for their application testing.
KEY WORDS
efficiency, effectiveness, effect
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