Ask Question
BusinessBusiness
15 October, 02:06

Which statement is TRUE concerning the relationship between efficiency and equity? Policies designed to increase equity will also increase efficiency. There is no trade-off between efficiency and equity if policies are fair. Policies designed to increase efficiency may decrease equity. Policies designed to increase efficiency will also increase equity.

+2
Answers (2)
  1. 15 October, 02:30
    0
    Policies designed to increase efficiency may decrease equity.

    Explanation:

    In economics, there is an unsolved dispute regarding whether a country can be efficient and equitable at the same time:

    efficiency refers to increasing production at the lowest possible costs equity refers to how are resources distributed throughout society.

    Evidence that supports both sides of the argument, those who favor higher equity vs. those who favor higher efficiency exists, but lately according to the World Bank, those countries with higher income distribution have been growing at a faster rate. But that requires more regulation and taxes by the government that might on the long run decrease the overall efficiency and reverse that situation.

    The US is the largest economy in eh world and it is also one the most efficient countries, as well as China, but they are also two of the most unequal countries in the world (at least compared to developed economies). Income equality increases the standard of living of the population but the big question that remains is that if that increase is sustainable? E. g. Sweden, Norway, Denmark and Finland keep growing while having income distribution, but for how long?

    Lately environmental issues are also a big debate because large economies and corporations are environmentally friendly, but the change in the world climate affects us all. Should the US government ban coal completely? or should it go a little further and ban all cows?
  2. 15 October, 02:35
    0
    Option C Policies designed to increase efficiency may decrease equity.

    Explanation:

    The reason is that the company if the company wants to increase its efficiency then it will have to invest in the operations that will increase its efficiency. This investment will come from raising finance either from the issuance of shares or borrowing money. So this means policies designed to increase efficiency requires investment so the option C is what the explanation is saying.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which statement is TRUE concerning the relationship between efficiency and equity? Policies designed to increase equity will also increase ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
J Corporation has gathered the following data on a proposed investment project (Ignore income taxes.) : Investment required in equipment $ 30,500 Annual cash inflows $ 6,200 Salvage value of equipment $ 0 Life of the investment 15 years Required
Answers (1)
The Whistling Straits Corporation needs to raise $64 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds.
Answers (1)
Todd is working on resource scheduling in preparation for the start of a project. There is a potential problem in the works, however, as the new collective bargaining agreement with the company's union has not been concluded.
Answers (1)
At a retirement party, a coworker described Terry as dedicated, hardworking, and dependable. He also said that Terry was a great leader, knew the computer system, and kept the company's finances in order. What career did Terry most likely have?
Answers (1)
Grady exchanges qualified property, basis of $12,000 and fair market value of $18,000, for 60% of the stock of Eadie Corporation. The other 40% of the stock is owned by Pedro, who acquired it five years ago.
Answers (1)
New Questions in Business
Suppose that M = 300, P = 100, and Y = 6. Then the velocity of circulation equals Select one: a. 2.00. b. 3.00. c. 50 d. 0.50. e. 0.02.
Answers (1)
Suppose that today, the current yield for a corporate bond is 4.3%. If the market price goes up by 11% tomorrow, compute the current yield after the increase.
Answers (1)
Determine the future amount if $240,000 is to be received 5 years from today, at 10 percent annual interest.
Answers (1)
Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value.
Answers (1)
Tirri Corporation has provided the following information: Cost per UnitCost per Period Direct materials$7.35 Direct labor$3.55 Variable manufacturing overhead$1.40 Fixed manufacturing overhead $24,100 Sales commissions$1.
Answers (1)
Home » Business » Which statement is TRUE concerning the relationship between efficiency and equity? Policies designed to increase equity will also increase efficiency. There is no trade-off between efficiency and equity if policies are fair.
Sign Up Forgot Password?