In the study of economics, the goals of efficiency and equity are often
A) compatible.
B) in conflict with one another.
C) objectively definable.
D) given equal emphasis.

Question

Quizplus · Accepted Answer

Efficiency and equity are often in conflict because achieving greater efficiency (maximizing output from resources) can lead to unequal distributions of wealth, while pursuing greater equity (fairer distribution of resources) can reduce overall economic efficiency by reallocating resources from high to low productivity uses.

In the Study of Economics, the Goals of Efficiency and Equity