Growth and equity are often found to be conflicting issues while addressing the problem of how to produce - Economics - Introduction

Question

Growth and equity are often found to be conflicting issues
while addressing the problem of ‘how to produce’
Explain

Prince Verma · Accepted Answer

The
answer given by Gurdeep is correct The problem of how to produce
deals with deciding which production technique is to be employed in
the production of the goods and services In a developing country
such a choice requires addressing the conflicting issues of growth
and equity A developing country is generally labour intensive
Accordingly, for the best possible and efficient utilisation of the
resources the economy must use labour intensive techniques This
would promote equity in the economy On the other hand, the
objective of growth requires the use of capital intensive
techniques However, such a choice would hamper the objective of
equity

Growth and equity are often found to be conflicting issues while addressing the problem of ‘how to produce’. Explain.