Code efficiency refers to how effectively a computer program uses resources, such as time and memory, to perform its tasks. Efficient code runs faster and consumes less memory, which is crucial for improving the performance of applications, especially in environments with limited resources. Improving code efficiency often involves optimizing algorithms and data structures. For example, using a more efficient sorting algorithm can significantly reduce the time it takes to organize data. Developers strive for code efficiency to enhance user experience and reduce operational costs, making it a key consideration in software development.