A trade-off between equity and efficiency may exist because of all of the following EXCEPT that:
A)allocating resources fairly may cause efficiency.
B)an efficient allocation of resources may lead to an outcome that most people consider unfair.
C)policies that promote equity often come at a cost of decreased efficiency.
D)allocating resources fairly may cause inefficiency.

Question

Quizplus · Accepted Answer

Allocating resources fairly may actually increase efficiency by promoting greater trust and social cooperation. Therefore, there is no trade-off between equity and efficiency in this scenario. The other options all present valid reasons why a trade-off may exist between equity and efficiency.

A Trade-Off Between Equity and Efficiency May Exist Because of All