Economic Analysis of Social Issues 1st Edition by Alan Grant

تمرين 18

Economist Arthur Okun's 1975 book Equality and Efficiency: The Big Tradeoff highlights the tension between equally distributing tile economic pie (equality, or equity) and generating the greatest possible economic pie (efficiency). Explain how the game played by Mellors and Nero in Section 6.4 illustrates Okun's trade-off.