Which statement is TRUE concerning the relationship between efficiency and equity?
A)Policies designed to increase efficiency will also increase equity.
B)Policies designed to increase equity will also increase efficiency.
C)Policies designed to increase efficiency may decrease equity.
D)There is no trade-off between efficiency and equity if policies are fair.

Question

Quizplus · Accepted Answer

Policies that prioritize efficiency may lead to decreased equity as they may benefit a certain group or individual at the expense of others. For example, privatization of public services may improve efficiency but could lead to inequitable access for low-income individuals who may not be able to afford the private services.

Which Statement Is TRUE Concerning the Relationship Between Efficiency and Equity