Economic Efficiency and Economic Equity Have What Relationship

question 32

Multiple Choice

Economic efficiency and economic equity have what relationship?

• A)Redistribution of income reduces economic equality while it increases economic efficiency.
• B)Income is equitably distributed in free market systems without intervention by government.
• C)There is a no tradeoff between the two.
• D)There is a tradeoff between equality and efficiency.
• E)More equality is generally more efficient.

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Definitions:

Improper Fractions

Fractions where the numerator is greater than or equal to the denominator, representing a value of one or more.

Lowest Terms

The simplest form of a fraction, where the numerator and the denominator are reduced to their smallest whole numbers.

Quarts

A unit of volume in the U.S. customary and the British imperial systems, equal to a quarter of a gallon, or approximately 0.946 liters.

Tint

A slight or faint shade of color or a small amount of a particular color added to something.