Economy in the 3 Es refers to what?

• A. Output quality
• B. Level of inputs
• C. Effectiveness
• D. Market share

Answer: (B)

Economy in the 3 Es is about getting the inputs you need at the lowest possible cost without compromising the required quality and timely delivery. In practice, this means managing how much and what kinds of resources you use—the level of inputs—to avoid waste and extra expense while still meeting the needs of the process. Output quality, market share, and effectiveness relate to other aspects: quality reflects how good the product or service is, market share measures competitive position, and effectiveness is about achieving the intended objectives. So the concept being tested is the level of inputs used to produce the outputs.