Economics GCSE
Equity versus efficiency
What Equity versus efficiency means in Economics GCSE, as defined for AQA.
Definition of Equity versus efficiency
Check what you remember
Read the wording for your board, then hide it and explain Equity versus efficiency in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Redistribution reduces inequality, but disincentive effects on work and enterprise and the poverty trap can negatively impact overall economic output.
Topics that use Equity versus efficiency
- Distribution of income (AQA GCSE)
Related terms
- Aggregate demand
- Asset accumulation
- Economic inequality
- Government intervention
- Incentives and disincentives
- Income inequality
- Labour markets
- Progressive taxation
Using Equity versus efficiency in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
Start free
All Economics GCSE termsA week of Premium from your first lesson · Then the free plan continues · No card, no charge