A reasonable measure of efficiency relies on
A)qualitative measures of inputs and outputs.
B)a match of inputs in one period with outputs in subsequent periods.
C)a causal relationship between inputs and outputs.
D)a ratio of planned output to actual output.

Question

Quizplus · Accepted Answer

A causal relationship between inputs and outputs is a fundamental aspect of measuring efficiency. This means that the inputs that are put into a system should have a clear impact on the outputs that are generated. Without this relationship, it is difficult to know whether a particular level of output is truly efficient or not. For example, if a factory increases the number of workers on a shift but does not see a corresponding increase in output, it would suggest that the additional workers are not contributing to efficiency.

A Reasonable Measure of Efficiency Relies on