A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts to distribute the benefits of those resources to the members of the society in a fair manner. However, redistributing income from rich to poor reduces the reward for working hard. Therefore, society faces a tradeoff between

A) guns and butter.
B) efficiency and equality.
C) inflation and unemployment.
D) work and leisure.

Redistributing Income

The transfer of income from certain individuals or groups to others through mechanisms like taxation, social security, and welfare programs, aiming at reducing income inequality.

Tradeoff

An exchange where one quality or aspect must be given up in order to gain another quality or aspect.

Efficiency

The optimal allocation of resources to maximize the production of goods and services or the achievement of a given objective with the least amount of waste.