Which of the following is correct?
A)Efficiency deals with the size of the economic pie,and equality deals with how fairly the pie is sliced.
B)Equality can be judged on positive grounds whereas efficiency requires normative judgments.
C)Efficiency is more difficult to evaluate than equality.
D)Equality and efficiency are both maximized in a society when total surplus is maximized.

Question

Quizplus · Accepted Answer

Efficiency refers to the overall size or growth of the economy, while equality refers to the distribution of resources or income within that economy. The statement in option A accurately reflects this distinction. Option B is incorrect because both efficiency and equality require normative judgments. Option C is also incorrect because evaluating efficiency can be done using objective measures, such as productivity or output per unit of input. Option D is incorrect because there may be trade-offs between efficiency and equality, so maximizing one does not necessarily maximize the other.

Which of the Following Is Correct