What Is Equity, and How Does It Differ from Efficiency

question 187

Essay

What is equity, and how does it differ from efficiency?

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Definitions:

Excess Burden

The economic loss that society suffers as a result of taxes or subsidies that distort market decisions.

Tax

A mandatory monetary fee or different kind of tax that is charged to a taxpayer by a government entity to finance public spending.

Revenue Collected

Revenue Collected pertains to the total amount of money received by an organization, government, or business from various sources, such as sales, taxes, or services rendered.

Economic Decisions

Choices made by individuals, businesses, and governments regarding resource allocation, production, and consumption, influenced by economic conditions and objectives.