Explain the difference between policy arguments about economic efficiency versus equity. Define economic efficiency. Define equity....

Explain the difference between policy arguments about economic efficiency versus equity. Define economic efficiency. Define equity. ?

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Solution:-

Economic efficiency is considered about optimal allocation of resources as well as the optimal production of resources. On the other hand, equity is considered how resources are distributed through the society.

EQUITY: Trading equity refers to stock. Accounting and corporate equity refer to the amount of capital contributed by the owners or the difference between a company’s total assets and its total liabilities and real estate equity refer to the difference between an asset’s market value and the debt owed on the asset.

ECONOMIC EFFICIENCY: It is a state where every resource is allocated optimally so that each person I served in the best possible way where the inefficiency and waste are minimized. Each country in the world has labor, capital, and natural resources. Countries differ, however, in the sizes of their population and the types and quantities of capital and natural resources.

Rahul Sunny answered 2 years ago

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