A typical society strives to get the most it can from its scarce resources.At the same time,the society attempts to distribute the benefits of those resources to the members of the society in a fair manner.In other words,the society faces a tradeoff between
A)guns and butter.
B)efficiency and equity.
C)inflation and unemployment.
D)work and leisure.

Question

Quizplus · Accepted Answer

The society is facing a tradeoff between efficiency (getting the most it can from its scarce resources) and equity (distributing the benefits of those resources in a fair manner). Option A is a tradeoff between military and civilian goods, which is not applicable here. Option C is a tradeoff between the overall price level and the unemployment rate, which is not relevant to the question. Option D is a tradeoff between time spent working and time spent on leisure activities, which is also not relevant to the question. Therefore, the best choice is B.

A Typical Society Strives to Get the Most It Can