When government policies are being designed
A) there is usually a tradeoff between equity and efficiency.
B) equity and efficiency goals are usually independent of each other.
C) equity can usually be achieved without a decrease in efficiency.
D) increasing efficiency usually results in more equity.

Question

Quizplus · Accepted Answer

There is usually a tradeoff between equity (fairness and justice in distribution) and efficiency (the production of goods and services at the lowest possible cost). Policies that prioritize equity may lead to a decrease in efficiency, while policies that prioritize efficiency may lead to a decrease in equity. Therefore, the government must balance these goals when designing policies.

When Government Policies Are Being Designed