Which of the Following Is an Example of an Efficiency-Equity

question 25

Multiple Choice

Which of the following is an example of an efficiency-equity trade-off faced by economic agents?

• A)Provincial health programs are not cost effective.Instead of focusing on universal access to the health care system, money should be spent on programs that prevent disease first and treating disease second.
• B)Concerned about the falling birth rate, the French government has pledged more money for families with three children, in an effort to encourage working women to have more babies.
• C)Some Canadian universities are actively recruiting foreign students for their technology-based programs.
• D)Municipal sports programs must charge all participants the same price, even when participants don't live in the municipality.

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Definitions:

Cash

A form of currency that includes coins and paper notes, which is used as a medium of exchange for goods and services.

Shares

Units of ownership interest in a corporation or financial asset, which provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims against the company's assets.

Common Stock Dividend

A portion of a company's earnings distributed to holders of its common stock, typically in the form of cash or additional shares.