Social and economic policies often involve a tradeoff between efficiency and equity because
A) economic units who are efficient completely dislike equity.
B) income redistribution increases incentives for efficient behaviour of economic units.
C) the economy can achieve efficient allocation of resources by starting with unequal allocation of resources.
D) income redistribution often reduces incentives for efficient behaviour of economic units.
E) it is not possible to improve efficiency with economic policies.
Correct Answer:
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