ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An economic situation where no individual would be better off doing something different.
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Description of market / economy that takes all opportunities to make some people better off without making other people worse off.
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Fairness; everyone gets his / her fair share.
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All other relevant factors remain unchanged.
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Detailed explanation-1: -The term “equity” refers to fairness and justice and is distinguished from equality: Whereas equality means providing the same to all, equity means recognizing that we do not all start from the same place and must acknowledge and make adjustments to imbalances.
Detailed explanation-2: -Fairness refers to analysis at the level of the individual while equity refers to analysis at the level of a group. Fairness compares the compensation of person A to person B; equity compares the compensation of identity groups, such as men versus women.
Detailed explanation-3: -The word equity is defined as “the quality of being fair or impartial; fairness; impartiality” or “something that is fair and just.”
Detailed explanation-4: -Productivity – people who are treated fairly and have equal opportunity are better able to contribute socially and economically to the community, and to enhance growth and prosperity. Confidence – an equal and fair society is likely to be safer by reducing entrenched social and economic disadvantage.