If a Society Only Cares About Efficiency and Not Equity,then

question 98

Multiple Choice

If a society only cares about efficiency and not equity,then

• A) all points on the contract curve yield the same level of social welfare.
• B) it will not rely on competitive markets to allocate goods.
• C) it will maximize the utility of its worst-off member.
• D) an equitable outcome is impossible.

---

Definitions:

Taxable Income

The portion of an individual's or corporation's income used to determine how much tax is owed to the government.

Internal Rate

An implied interest rate that equates the present value of an investment's expected future cash inflows to its initial cost.

Investment Proposals

Formal suggestions or plans put forward for consideration, aimed at initiating a financial investment.

Discount Rate

The discount rate applied in the evaluation of the present value of future cash flows in discounted cash flow analysis.