Questions: Equality versus efficiency All societies face a trade-off between efficiency and equality. If the government lowers income taxes on Americans in the top one percent of earners, while decreasing welfare payments to citizens with incomes below the federal poverty threshold, the most likely result is in efficiency and in equality in the United States. Match each definition to its appropriate concept. Definition Efficiency Equality When a society gets the most it can from its scarce resources When economic benefits are distributed uniformly across society

If the government lowers income taxes on Americans in the top one percent of earners while decreasing welfare payments to citizens with incomes below the federal poverty threshold, the most likely result is an increase in efficiency and a decrease in equality in the United States.

1. Efficiency:

   • Definition: When a society gets the most it can from its scarce resources.
   • Explanation: Lowering income taxes for the top earners can potentially lead to increased investment and economic activity, as these individuals may have more capital to invest in businesses, stocks, or other economic ventures. This can lead to a more efficient allocation of resources, as the economy might grow and produce more goods and services.

2. Equality:

   • Definition: When economic benefits are distributed uniformly across society.
   • Explanation: Decreasing welfare payments to those below the poverty threshold reduces the financial support available to the lower-income population. This action can widen the income gap between the wealthy and the poor, leading to a decrease in equality, as the distribution of economic benefits becomes less uniform.

In summary, the policy described would likely increase efficiency by potentially stimulating economic growth through tax incentives for the wealthy, but it would decrease equality by reducing support for the economically disadvantaged, thereby widening the income disparity.