When the cost of making income transfers is recognized,we recognize the big tradeoff between
A)efficiency and fairness.
B)marginal benefit and marginal cost.
C)value and marginal benefit.
D)producer surplus and consumer surplus.
E)deadweight loss and utilitarianism.

Question

Quizplus · Accepted Answer

When considering the cost of making income transfers, we must weigh the efficiency of the transfer against the fairness of the transfer. Efficiency may lead to lower costs, but may also lead to less fair distribution, while fairness may lead to greater equality but may require more resources to implement. This tradeoff is a key consideration in designing income transfer programs.

When the Cost of Making Income Transfers Is Recognized,we Recognize