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Why do social and economic policies often involve a tradeoff between efficiency and equity? Because

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Why do social and economic policies often involve a tradeoff between efficiency and equity? Because

Why do social and economic policies often involve a tradeoff between efficiency and equity? Because

▸ the economy can achieve efficient allocation of resources by starting with unequal allocation of resources.

▸ income redistribution often reduces incentives for efficient behaviour of economic units.

▸ income redistribution increases incentives for efficient behaviour of economic units.

▸ economic units who are efficient completely dislike equity.

▸ it is not possible to improve efficiency with economic policies.

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Microeconomics

Edition: 17^th

Author: Ragan

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kirstykirst Author

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Thanks for your help!!

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Smart ... Thanks!

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