Homework: Chapter $01$

$6.$ Equity and efficiency

Situation

Equity

Efficiency

A situation where society is producing the best combination, and the maximum amount, of goods and services given resource constraints.

The fairness of how goods and services are distributed among society.

Suppose that you and a friend have won a contest for a free pizza. Consider the following scenarios:

You share a medium pizza, which has $4$ slices. You each get two of those slices.

You share a large pizza which has $4($larger$)$ slices. Your friend gets three slices and you get one slice.

True or False: Scenario $2$ is more equitable than scenario $1$

True

False