What happens 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 an efficiency loss.
D) Increasing efficiency usually results in more equity.

Question

Quizplus · Accepted Answer

When designing government policies, there is often a tradeoff between equity (fairness and distribution of benefits) and efficiency (maximum output with minimum input). Achieving greater equity may result in decreased efficiency, and increasing efficiency may result in less equity. Thus, policymakers strive to strike a balance between the two objectives.

What Happens When Government Policies Are Being Designed