The distinction between efficiency and equality can be described as follows: A)

Question

The distinction between efficiency and equality can be described as follows:

A) Efficiency refers to maximizing the number of trades among buyers and sellers; equality refers to maximizing the gains from trade among buyers and sellers.

B) Efficiency refers to minimizing the price paid by buyers; equality refers to maximizing the gains from trade among buyers and sellers.

C) Efficiency refers to maximizing the size of the pie; equality refers to producing a pie of a given size at the least possible cost.

D) Efficiency refers to maximizing the size of the pie; equality refers to distributing the pie fairly among members of society.

Explanation / Answer

Among those options the best suited for the distinction between efficiency and equality is:

D) Efficiency refers to maximizing the size of the pie; equality refers to distributing the pie fairly among members of society.

That way the efficiency is about getting the product or service right for the market desire, minimizing the cost and mazimazing the profits. And equality you get it from giving every member what they deserve fairly.

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