Question

Which of the following correctly describes the relationship between economic efficiency and economic equity?

They always call for opposite outcomes.

There is no conflict between the two goals.
There is often a trade-off between the two.

Answer 1

Economic efficiency and economic equity can often conflict with each other, leading to a trade-off between the two goals. However, there are also situations where certain programs can increase both economic equity and economic output.

Step-by-step explanation:

Economic efficiency and economic equity can often conflict with each other, leading to a trade-off between the two goals. This is because achieving greater economic efficiency may require sacrificing some degree of economic equity, and vice versa. It is possible to increase economic equality with little impact on economic output, but too aggressive a push for equality can reduce economic output. However, there are also situations where certain programs can increase both economic equity and economic output, such as policies that provide free public education. In these cases, equality and economic growth can complement each other.