"Dividing the economic pie more equally may reduce the size of the economic pie." This argument is characterized as:

Question

Quizplus · Accepted Answer

This argument represents a common debate between equity (fair distribution of resources) and efficiency (maximizing overall economic output). Dividing the pie more equally may be just, but it could also reduce the incentive for individuals to work hard and innovate, ultimately leading to a smaller overall economic pie. Therefore, there is a trade-off between equity and efficiency.

"Dividing the Economic Pie More Equally May Reduce the Size