Question

A company’s target production is 5000 units in a year. Ram, the manager of the company, is able to produce 5000 units, but at a higher production cost. Then Ram is .
(A) Effective as he was able to attain the targeted production at minimum cost
(B) Efficient as he was able to attain the targeted production at a higher cost
(C) Effective as well as efficient
(D) Effective but not efficient because of high production cost
(E) Efficient but not effective
Choose the correct answer from the options given below:

• A. (D) only
• B. (A), (C), and (E) only
• C. (A), (B), (C), and (D) only
• D. (C) and (E) only

Answer 1

Answer: (A)

(D) only

Answer 2

Ram is considered ”effective but not efficient” because he was able to meet the target (effectiveness) but did so at a higher cost, which means he was not efficient. Efficiency refers to minimizing the cost and maximizing output with the least possible input, which Ram failed to do.