The idea of the "big tradeoff" points out the costs of
A) using a results approach to fairness when the rules approach is correct.
B) transferring income using taxes that decrease efficiency.
C) price hikes during natural disasters.
D) using a rules approach to fairness when the results approach is correct.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

The "big tradeoff" refers to the economic concept that transferring income through taxes (to achieve greater equity or fairness) can lead to a decrease in economic efficiency. This is because taxes can distort economic behavior and incentives, potentially leading to less economic output or growth.

The Idea of the "Big Tradeoff" Points Out the Costs