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Which of the Following Statements Summarizes the Equity-Efficiency Tradeoff in Relation

Question 112

Multiple Choice

Which of the following statements summarizes the equity-efficiency tradeoff in relation to income redistribution programs?


A) The more equal the incomes, the greater the efficiency gains.
B) When efficiency grows, the income distribution narrows.
C) When incomes equalize, average incomes rise.
D) More equal incomes may come at the cost of lower average incomes.

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