The Equality-Efficiency Trade-Off Suggests That

question 4

Multiple Choice

The equality-efficiency trade-off suggests that:

• A) welfare programs stimulate incentives to work.
• B) inefficiencies result when income is transferred from rich to poor.
• C) noncash transfers are superior to cash transfers.
• D) economic growth is the best means of reducing poverty.

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Definitions:

Managed Futures

Investment strategies that involve the use of futures contracts as part of a broader investment strategy managed by professional investment managers.

Market-neutral Hedge Funds

Investment funds that seek to generate returns by exploiting price differences between related assets while maintaining a neutral exposure to market movements.

Directional Long Funds

Investment funds that aim to profit from an anticipated upward movement in the price of the assets they hold.

Betas

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.