Which of the following describes the equityefficiency tradeo

Which of the following describes the equity-efficiency trade-off? Actions intended to make economic outcomes fairer can cause efficiency to decrease. The least efficient economic outcome is the fairest outcome. There is always a more equitable outcome that is also more efficient. Government intervention can increase efficienvy in a market.

Solution

Actions intended to make economic outcomes fairer can cause efficiency to decrease because trade off means one thing has to be sacrificed ot attain other. This sttement is indicating that we ned to compromise efficiency if we want to attain equity.