Method
In an economist's perfect world (which doesn't exist, of course), resources are optimally allocated when they are used to produce goods and services that match consumers needs and wants at the lowest possible cost of product. Efficiency of production means fewer resources are expended in producing goods and services, which allows resources to be used for other economic activities such as further production, savings, and investment. This basically boils down to creating what customers want as cheaply and efficiently as possible.