Answer to Question 1
Answer: A
Explanation: Mathematically, efficiency is measured as a ratio of inputs to outputs. For example, in physics the ratio of input energy to output energy defines a machine's efficiency. The same principles apply to management. Efficiency is measured as the ratio of input energy, or other resources such as costs or labor, to the amount of product or output created. The input-output ratio is neither additive nor inverse but rather directly proportional in some way. Finally, though decreasing inputs can increase efficiency, it is not the only way to increase efficiency.
Answer to Question 2
Answer: A
Explanation: Effectiveness is said to be doing the right things because effectiveness is concerned with obtaining results and reaching goals. Doing things in the right way results in efficiency rather than effectiveness. Note that an enterprise can be effectivei.e., it can attain goalswithout being efficient in such areas as keeping costs and resources down. Doing things intelligently is clearly part of an effective effort without being critical to it. The same can be said of doing things when necessaryit is not a critical part of an effective effort.
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