Asked by Elyssa Arcibal on May 04, 2024
Verified
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.
Efficiency
The optimal use of resources to achieve the desired outcome with minimal waste or effort.
Equity
Refers to fairness or justice in the distribution of wealth, resources, and opportunities.
- Evaluate the role of efficiency and equity in economic policies.
Verified Answer
KW
Kelsi WhiteMay 10, 2024
Final Answer :
C
Explanation :
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.
Learning Objectives
- Evaluate the role of efficiency and equity in economic policies.