The equality-efficiency trade-off suggests that

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The equality-efficiency trade-off suggests that if we aim for complete equality, it may result in inefficiencies due to reduced incentives to produce or work. On the other hand, if we focus solely on efficiency, it may result in an unequal distribution of resources, leading to social unrest and instability. Therefore, the trade-off suggests that we need to strike a balance between equality and efficiency. Option A is incorrect because welfare programs may sometimes lead to reduced incentives to work. Option C is incorrect because noncash transfers may not always be feasible or effective in addressing poverty. Option D is incorrect because economic growth alone may not necessarily reduce poverty, and there may be a need for policies and programs that specifically target poverty reduction.

The Equality-Efficiency Trade-Off Suggests That