Our economy does a very good job with respect to (LO2) a) both equity and efficiency b) equity, but not efficiency c) efficiency, but not equity d) neither equity nor efficiency

Equity refers to the fairness in the distribution of resources and welfare in an economy. It deals with how economic outcomes such as income and wealth are shared among the population. Efficiency, on the other hand, refers to how effectively and optimally resources are allocated in the economy to produce goods and services. It deals with maximizing the total economic output or welfare by minimizing resource inputs.

a) both equity and efficiency: In this case, the economy would be performing well in terms of both fair distribution of resources and optimal allocation of resources to produce goods and services. b) equity, but not efficiency: In this option, the economy performs well in distributing resources fairly among the population, but it does not allocate the resources optimally to produce goods and services. c) efficiency, but not equity: Here, the economy allocates resources optimally for production but does not ensure a fair distribution of resources and welfare among the population. d) neither equity nor efficiency: This option describes an economy that performs poorly in terms of both fair distribution of resources and optimal allocation of resources for production.

Since the given exercise does not provide specific information about the economy we are analyzing, it is not possible to determine the correct answer based on the provided information. However, this exercise can be used as a starting point for a discussion on how economies perform in terms of equity and efficiency. Students can be encouraged to research and analyze various economies and their performance with regards to equity and efficiency and form their own opinions.