The Distinction Between Efficiency and Equality Can Be Described as Follows

question 148

Multiple Choice

The distinction between efficiency and equality can be described as follows:

• A)Efficiency refers to maximizing the number of trades among buyers and sellers; equality refers to maximizing the gains from trade among buyers and sellers.
• B)Efficiency refers to minimizing the price paid by buyers; equality refers to maximizing the gains from trade among buyers and sellers.
• C)Efficiency refers to maximizing the size of the pie; equality refers to producing a pie of a given size at the least possible cost.
• D)Efficiency refers to maximizing the size of the pie; equality refers to distributing the pie fairly among members of society.

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Definitions:

Market for Risk

A financial market where individuals and institutions trade financial instruments to manage risk exposure.

Risk Reduction

Strategies or actions taken to minimize the potential for loss or harm in investment, business operations, or other areas of concern.

Probability

The probability or possibility of a particular event happening.

Investing

The act of allocating resources, usually money, with the expectation of generating an income or profit.