Why would redistribution result in equityefficiency tradeoff

Why would redistribution result in \"equity-efficiency tradeoff\"?

Solution

Equity and efficiencyare two related yet opoosite terms in respect of economics. Equity refers to equal distribution of wealth/resources amongst different members of society. Efficiency on the other other refers to rewarding the deserved. In other words efficiency woudl mean attaching reward/returns with the level of hard work/contribution to the society.

Equity means both hard working and hardly working person will get equal rewards/resources. Also rewarding th effiicient would mean unequal distribution of income/ resources. Therefore there always exist equity eficiency trade off in the society. The more the equity the lesser motivated would be people to earn more. The more the reward with hard work, the greater will be inequlity by not paying the unabled person.