How would you depict the trade-off between equity and efficiency on a graph?

How would you depict the​ trade-off between equity and efficiency on a​ graph? Inequality on one axis and social surplus on the other with a​ positively-sloped function.

What is between efficiency and equity?

The equity-efficiency tradeoff occurs when maximizing the productive efficiency of the market leads to less equitable wealth distribution. In welfare economics, there is said to be a tradeoff between market efficiency and market equity.

What is the difference between efficiency and equity Why do government policymakers face a trade-off between efficiency and equity?

If the distribution of resources or goods in an economy is fair between different members of the society, it indicates equity. Efficiency is making the best out of scarce resources at the best possible price. … When the resources are distributed we will be faced with a trade-off between efficiency and equity.

What do you mean by trade-off?

Definition of trade-off

1 : a balancing of factors all of which are not attainable at the same time the education versus experience trade-off which governs personnel practices— H. S. White. 2 : a giving up of one thing in return for another : exchange. Other Words from trade-off Synonyms Learn More About trade-off.

What is trade-off in economics?

The term “trade-off” is employed in economics to refer to the fact that budgeting inevitably involves sacrificing some of X to get more of Y. With a fixed amount of savings, one can buy a car or take an expensive vacation, but not both. The car can be “traded off” for the vacation or vice versa.

What is a trade-off in economics examples?

In economics, a trade-off is defined as an “opportunity cost.” For example, you might take a day off work to go to a concert, gaining the opportunity of seeing your favorite band, while losing a day’s wages as the cost for that opportunity.

What is trade-off in strategy?

Trade-offs occur when activities are incompatible. Simply put, a trade-off means that more of one thing necessitates less of another. An airline can choose to serve meals—adding cost and slowing turnaround time at the gate—or it can choose not to, but it cannot do both without bearing major inefficiencies.

What is the importance of trade-off?

The necessity of making trade-offs alters how we feel about the decisions we face; more important, it affects the level of satisfaction we experience from the decisions we ultimately make.

Why is trade-off important in economics?

Trade-offs create opportunity costs, one of the most important concepts in economics. … Everything has opportunity costs. If you just bought something, you could have always chosen to buy something else instead. If you just chose to spend your time in a particular way, you could have always done something else.

What is another word for trade-off?

The exchange of one thing for another. exchange. swap. trade. commutation.

What is stakeholder trade-off?

We address this gap by studying primary stakeholders’ intention to associate with a firm that treats their own stakeholder group either more or less favorably than another stakeholder group. … Tradeoffs are thus important because they influence which stakeholders are attracted to the firm.

How can trade-offs be resolved?

  1. Reframe. You do not have to choose and lose in a trade-off. …
  2. Negotiate. You may be stuck in a trade-off because you haven’t explored what is possible. …
  3. Delimit. Perceived trade-off in a career transition may arise from self-imposed false limits. …
  4. Contribute. …
  5. Accept.

How do you make a trade-off?

Making decisions requires trading off one item against another. In economics, the term trade-off is often expressed as an opportunity cost, which is the most preferred possible alternative. A trade-off involves a sacrifice that must be made to get a certain product or experience.

What is the opposite of trade-off?

antonyms for trade-off

denial. disagreement. misunderstanding. refusal. contest.

How do you write a trade-off?

Jack had to make a trade-off between getting a good night’s sleep and staying up late to finish his research project. Exercising and following a strict diet instead of eating junk food was a trade-off she was willing to make to get healthy.

What are five distribution trade-offs?

The specific trade-offs variables in this study are limited to five. They are transportation cost (C), reliability (R), information systems (I), capacity (V), and insecurity (S). … So, for example, the trade-off between cost and capacity is termed as a CV.

What is a trade-off in government?

by Dr. Trade-off. When choices are made (collectively or by an individual) to accept having less of one thing in order to get more of something else, the results are called trade-offs.

How do you calculate trade-offs?

Calculating a Trade-Off

There is no specific calculation for a trade-off, so determining the trade-off in any situation is not always easy. When deciding between two or more courses of action, ranking the alternatives from top to bottom can make you feel more confident that you are picking the right one.

What is logistics trade-off?

Trade-offs are compensatory exchanges between the increase of some logistics costs and the reduction of other logistics costs and/or an increase in the level of customer service.

What are the 3 basic trade-offs faced by a society?

Society faces three key trade-offs: what goods and services to produce, how to produce them, and who gets the goods and services. A market is an exchange mechanism (such as a physical structure or a computer network) that allows buyers to trade with sellers.