________ occurs when economic benefits are distributed fairly.
A)Productive efficiency
B)Allocative efficiency
C)Equality
D)Equity

Question

Quizplus · Accepted Answer

Allocative efficiency refers to the optimal allocation of resources to produce the goods and services that consumers value the most, while productive efficiency refers to producing goods and services at the lowest possible cost. Equality refers to treating everyone the same, regardless of individual differences or circumstances. Therefore, the only option that fits the definition of distributing economic benefits fairly is D) Equity.

________ Occurs When Economic Benefits Are Distributed Fairly