There is a basic trade-off between efficiency and equity


There is a basic trade-off between efficiency and equity because A. Income redistribution tends to reduce incentives for efficient behavior. B. People who are efficient dislike equity. C. Pareto improvements can only be made by sacrificing efficiency. D. The economy can only achieve a Pareto efficient allocation by starting from an unequal allocation of resources.

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Financial Management: There is a basic trade-off between efficiency and equity
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