There is a kind of cost-benefit analysis involved and the relationship between inputs and outputs. If by using less resources (i.e., the inputs) more benefits are derived (i.e., the outputs) then _______ has increased.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Efficiency
Option (1) Creativity — Incorrect. Creativity means finding new ideas and new ways of doing work. It does not compare what is used with what is gained.
Option (2) Efficiency — Correct. Efficiency means doing the task correctly and with minimum cost. It compares inputs (resources used) with outputs (benefits gained). When fewer resources give more benefits, efficiency has gone up.
Option (3) Effectiveness — Incorrect. Effectiveness is about the end result: finishing the right task and reaching the goal on time. A manager can be effective and still waste resources. Efficiency looks at the cost of getting there, effectiveness at getting there.
Option (4) Cost — Incorrect. Cost is the input side itself. Using less of it is how efficiency rises, so cost is not what increases here.
NCERT (2026-27 Edition): “Concept … Efficiency means doing the task correctly and with minimum cost. There is a kind of cost-benefit analysis involved and the relationship between inputs and outputs. If by using less resources (i.e., the inputs) more benefits are derived (i.e., the outputs) then efficiency has increased. …” |