The solution is d) Efficiency refers to maximizing the size of the pie; equality refers to distributing the pie fairly among members of society. The greatest production that an economy can produce is a worry.
Efficiency and Equality: Two of the main subjects in economics are efficiency and equality. Simon Kuznets made an early observation known as the Kuznets Curve, which suggests that as income increases, inequality initially rises and then declines. Another crucial area of economics that deals with the trade-off between efficiency and equity is the issue of appropriate capital taxes.
To know more about Efficiency and Equality, refer:
https://brainly.com/question/28039787
#SPJ4
Complete Question:
The city government of Lexington is concerned with both efficiency and equality. They need an economist to help them understand what each of these concepts entail.
How would you compare efficiency and equality?
a) Efficiency refers to maximizing the number of trades among buyers and sellers; equality refers to maximizing the gains from trade among buyers and sellers.
b) Efficiency refers to minimizing the price paid by buyers; equality refers to maximizing the gains from trade among buyers and sellers.
c) Efficiency refers to maximizing the size of the pie; equality refers to producing a pie of a given size at the least possible cost.
d) Efficiency refers to maximizing the size of the pie; equality refers to distributing the pie fairly among members of society.
