When government policies are enacted,
A)equity can usually be enhanced without an efficiency loss, but efficiency can never be enhanced without an equity loss.
B)efficiency can usually be enhanced without an equity loss, but equity can never be enhanced without an efficiency loss.
C)it is always the case that either efficiency and fairness are both enhanced, or efficiency and equity are both diminished.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

The statement in option A is incorrect as efficiency gains can sometimes come at the cost of equity. The statement in option B is also incorrect as policies may be enacted to enhance equity at the expense of efficiency. Option C is too general of a statement and does not account for the complexity of policy outcomes. Therefore, the correct answer is D, none of the above are correct.

When Government Policies Are Enacted