When economists use the term 'big tradeoff' when discussing efficiency they are referring to the tradeoff between
A) deadweight loss and producer/consumer surplus.
B) marginal cost and marginal benefit.
C) producer surplus and consumer surplus.
D) efficiency and fairness.
E) external costs and external benefits.

Question

Quizplus · Accepted Answer

The 'big tradeoff' refers to the balance between efficiency and fairness in economic discussions. Economists often highlight that achieving greater efficiency might come at the cost of fairness, and vice versa, indicating a tradeoff between the two.

When Economists Use the Term 'Big Tradeoff' When Discussing Efficiency