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1 Summary II ? Efficiency and Justice are two basic rules to evaluate the economic behavior ( including Public Finance). ? Generally, efficiency is referred to as Paretooptimality. It means that it would not be possible to change it so as to make someone better off without others being worse, given the resource and technical constrain. ? The Paretoefficiency is the triplicity of Productive Efficiency, Productmix Efficiency and Exchange Efficiency 2 Summary III ? The simplified rules to evaluate the efficiency is “MSB=MSC”. We can prove that the freemarket system can induce the efficiency oute. ? We can’t get consensus on the equity problem: utilitarianism。 Rawls39。 Theory of Justice。 Sen A.’s Theory. Lorenz curve and Gini coefficient are the methods to indicate the status in quo of the justice of distribution. 3 ? Efficiency and justice are conflicted in some ways and coincided in others. Though freemarket can get the efficient oute, it can’t turn up trumps in justice. So, The public policy should trade off between