What is an equity efficiency trade-off?


  1. What is an equity efficiency trade-off?
  2. What is between efficiency and equity?
  3. How would you depict the trade-off between equity and efficiency on a graph?
  4. How might this change represent a trade-off between equality and efficiency?
  5. What is a trade-off example?
  6. What is trade-off in economic?
  7. What is your trade-off?

What is an equity efficiency trade-off?

An equity-efficiency tradeoff results when maximizing the efficiency of an economy leads to a reduction in its equity—as in how equitably its wealth or income is distributed. An economy is efficient in this sense when it maximizes the total utility of the participants.

What is between efficiency and equity?

Put another way, an efficient market is one that optimizes the production and allocation of resources given existing factors of production. An equitable market means the distribution of goods and services throughout society and the profits received by firms are fair.

How would you depict the trade-off between equity and efficiency on a graph?

How would you depict the​ trade-off between equity and efficiency on a​ graph? Inequality on one axis and social surplus on the other with a​ positively-sloped function.

How might this change represent a trade-off between equality and efficiency?

How might this change represent a trade-off between equality and efficiency? (b) This change might represent a trade-off between equality and efficiency due to the fact that it increases efficiency at the cost of equality. The temporary nature of the benefits creates pressure for the beneficiaries to search job.

What is a trade-off example?

In economics, a trade-off is defined as an “opportunity cost.” For example, you might take a day off work to go to a concert, gaining the opportunity of seeing your favorite band, while losing a day’s wages as the cost for that opportunity.

What is trade-off in economic?

The term “trade-off” is employed in economics to refer to the fact that budgeting inevitably involves sacrificing some of X to get more of Y. With a fixed amount of savings, one can buy a car or take an expensive vacation, but not both. The car can be “traded off” for the vacation or vice versa.

What is your trade-off?

A trade-off (or tradeoff) is a situational decision that involves diminishing or losing one quality, quantity, or property of a set or design in return for gains in other aspects. In simple terms, a tradeoff is where one thing increases, and another must decrease.