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BPP answer is A but I think should be C. Number of patients treated per $1 spent on the state hospital service should be a measure of economy, right? I don’t understand why BPP said it is a measure of efficiency. Could you please advice?
The BPP answer is correct.
Economy is paying a fair price for things i.e. not paying more for things that they need to.
Efficiency is making the best use of the money spent. The more patients that are treated for the money, the more efficiently it is being used.
Do watch my free lectures on this. I explain the distinction between economy, efficiency, and effectiveness, with examples.
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