Efficiency versus equity
The economy consists of two consumers, Jamal and Mitch. They have ordered a pizza and are deciding how to divide it between themselves. They have brainstormed a few solutions, and now they want to consult an economist to determine if their solutions are efficient and fair. Assume that a pizza consists of eight slices, and the more pizza Jamal and Mitch eat, the happier they are. One of their solutions is to divide the pizza in half, so each of them would get four of the eight slices. An economist would say this solution is O efficient but not fair O fair but not efficient O efficient and fair O neither efficient nor fair