Section A

City General Hospital is a not-for-profit organization evaluated on the 'Value for Money' (3Es) framework. The hospital recently negotiated a 10% discount on bulk purchases of surgical masks without compromising on the quality of the masks.

Which of the 3Es does this achievement primarily represent?

Answer options:

Economy

Efficiency

Effectiveness

Equity

How to approach this question

Match the scenario (buying inputs cheaper) to the definitions of Economy (input cost), Efficiency (input/output ratio), and Effectiveness (achieving goals).

Full Answer

A.Economy✓ Correct

The 3Es are Economy, Efficiency, and Effectiveness. - Economy: Obtaining inputs of the right quality at the lowest cost (e.g., bulk discounts). - Efficiency: Maximizing output for a given input, or minimizing input for a given output. - Effectiveness: Achieving the organization's ultimate objectives.

Common mistakes

Confusing Economy with Efficiency.

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