The Trade-Off Between Equity and Efficiency Occurs Because

question 27

Multiple Choice

The trade-off between equity and efficiency occurs because:

• A)the efficient allocation of resources is bad for business and industry.
• B)allocating resources fairly may cause inefficiency.
• C)everyone must pay more tax to ensure equity.
• D)efficiency is politically unpopular.

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Definitions:

Estoppel

A legal principle that prevents a party from contradicting or asserting something contrary to a previous statement or behavior.

Detriment

A loss or harm suffered as a result of an action or a decision.

Adequacy

The sufficiency of something in meeting a specific need or standard, often evaluated in terms of quality or quantity.

Consideration

The value promised to be transferred in a contract, making it legally binding.