The goals of equity and ________________ are sometimes in conflict.

A) fairness
B) efficiency
C) capital

Equity often involves redistributive policies aimed at reducing inequality, which may come at the cost of reducing efficiency in the economy. For example, some argue that progressive tax policies aimed at redistributing wealth from the rich to the poor may discourage investment and entrepreneurship, thus reducing economic growth and efficiency. Therefore, the goals of equity and efficiency are often in conflict.