How is economic efficiency enhanced by allowing a conscripte
How is economic efficiency enhanced by allowing a conscripted man to hire someone to replace him? Does the option to pay someone to be conscripted in your place illustrate a tension between efficiency and equity?
Solution
It increases because who are better in other services and thus earn more there are the only ones who will hire someone to replace him. Everybody works according to his comparative advantage and thus efficiency rise
Yes I do think there is tension between efficiency and equity. E. G equity demands that every able bodied person should once be conscripted into armed forces but efficiency demands that those having comparative advantage in other jobs should be allowed to pursue there carrier freely.
