EFFICIENCY measures how successfully the inputs have been transformed into outputs. When an economy is economically efficient, any changes made to assist one entity would harm another. In terms of production, goods are produced at their lowest possible cost, as are the variable inputs of production.
Example:
You have purchased a fountain pen accidentally, but you need that of a ball-pen. Suppose both the products are of the nearly same value.Your friend similarly has purchased a ball-point pen but needs a fountain pen. If both of you exchange the products with each other, it will be considered fair trade, and this could lead to economic efficiency.
EFFECTIVENESS measures how successfully the system achieves its desired outputs. Because effectiveness involves the subjective reaction of the customer, it is the most difficult to measure.
Example:
If a company is not doing well it may decide to train its workforce to use a new and modern technology (such as system softwares). The training may go well, with employees learning the new technology in record time.
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Answer:
Answer with Explanation:
EFFICIENCY measures how successfully the inputs have been transformed into outputs. When an economy is economically efficient, any changes made to assist one entity would harm another. In terms of production, goods are produced at their lowest possible cost, as are the variable inputs of production.
Example:
You have purchased a fountain pen accidentally, but you need that of a ball-pen. Suppose both the products are of the nearly same value.Your friend similarly has purchased a ball-point pen but needs a fountain pen. If both of you exchange the products with each other, it will be considered fair trade, and this could lead to economic efficiency.
EFFECTIVENESS measures how successfully the system achieves its desired outputs. Because effectiveness involves the subjective reaction of the customer, it is the most difficult to measure.
Example:
If a company is not doing well it may decide to train its workforce to use a new and modern technology (such as system softwares). The training may go well, with employees learning the new technology in record time.
Explanation:
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