Which of the following statements most accurately identifies a limitation of the free-market economic system?
A) Free-market economies offer little opportunity for the poor to work their way out of poverty.
B) Free-market economies have been unable to create wealth as rapidly as other types of economic systems.
C) Free-market economies are generally plagued by shortages of needed consumer goods.
D) Free-market economies tend to result in unequal distribution of wealth.

Question

Quizplus · Accepted Answer

Free-market economies have been a major factor in the creation of wealth enjoyed by many of the world's nations. This type of system gives people opportunities to work their way out of poverty. And, the ability of market prices to adjust will help eliminate shortages (and surpluses) of goods and services. However, the incentive structure in a free-market economy naturally leads to inequality in the distribution of income and wealth.

Which of the Following Statements Most Accurately Identifies a Limitation