What does the term 'equity' mean, in economics?
A)Everyone has an equal standard of living.
B)The hardest working individuals consume all they want.
C)Only elected officials have high standards of living.
D)Economic benefits are distributed fairly.

Question

Quizplus · Accepted Answer

Equity in economics means that economic benefits are distributed fairly among members of society. This could mean equal distribution or a distribution that takes into account different factors, such as need or contribution. It does not mean that everyone has an equal standard of living or that the hardest working individuals consume all they want. It also has nothing to do with only elected officials having high standards of living.

What Does the Term 'Equity' Mean, in Economics