Which economic principle is applicable in each of the following cases? Justify your answer.

1. Efficiency is the property of society getting the most it can from its scarce resources. Equity is the property of distributing economic prosperity fairly among the members of society. When the government redistributes income from the rich to the poor, this action increases equity but decreases efficiency.

2. When each person specializes in producing the good for which they have a comparative advantage, the total economy's production rises. It, in turn, would increase the size of the economic pie, making everyone better off.

3. When Toronto city officials looked at the data on traffic accidents at intersections where the countdown signals were installed, they noted that accidents were lower at those intersections after the signals were installed.