Policies designed to promote economic efficiency never operate in opposition to policies designed to promote economic equity because efficiency implies that equity has been achieved.

Question

Quizplus · Accepted Answer

Economic efficiency and economic equity can sometimes have opposing effects. Policies aimed at efficiency may prioritize the use of resources in the most productive way, even if this means unequal outcomes. On the other hand, policies aimed at equity might prioritize more equal distribution of resources, even if this means sacrificing some efficiency. Therefore, policies promoting efficiency may not necessarily achieve equity.

Policies Designed to Promote Economic Efficiency Never Operate in Opposition