Which of the following is an example in which "the big tradeoff" can occur?
A) The government redistributes income from the rich to the poor.
B) Ford increases the price of a pickup truck.
C) A basketball player signs a $5 million contract.
D) A college lowers tuition.
E) The price of personal computers falls year after year.

Question

Quizplus · Accepted Answer

"The big tradeoff" refers to the balance between efficiency and equity. Option A, where the government redistributes income from the rich to the poor, is a classic example of this tradeoff. It aims to increase equity (fairness) at the potential cost of efficiency (economic productivity).

Which of the Following Is an Example in Which "The