Which of the following statements is (are) true?
A) An efficient allocation of resources maximizes the net benefit of each activity.
B) An efficient allocation of resources implies that the distribution of income is equitable.
C) Judgments about equity are positive judgments.
D) A and B are true.

Question

Quizplus · Accepted Answer

An efficient allocation of resources means that resources are allocated in a way that maximizes the net benefit (total benefits minus total costs) of each activity. However, it does not necessarily imply an equitable distribution of income, which is a separate concept related to fairness and social justice. Choice C is also incorrect as judgments about equity are normative, not positive judgments.

Which of the Following Statements Is (Are) True