Equality Vs Efficiency - Essay Example

In this case, a quick return on this particular investment will be experienced as more farm produce will reach the market.

On the other hand, equality tradeoff is concerned with even distribution of resources throughout society. In this case, allocation of resources ensures equality in total disregard of return on investment. As such, all sectors in the economy are financed equally without considering the return. A good example of an equality tradeoff is government services such as education and healthcare. As such, investment is made across the country where every person has access without considering the level of productivity or returns.

If the state redistributes money from the rich to the poor, it would achieve an equality tradeoff as this will ensure that every citizen has access to money for investment. This would see a rise in investment in many places in the economy. However, the efficiency tradeoff will be contravened as the investment would be made even in areas without good returns.  Eventually, the economy will collapse as the return on investment will decrease.