Which of the following is a key criticism of the market economy as a system of allocation?
A) Goods and services are allocated unequally based on ability to pay.
B) Producers have strong incentives to innovate because successful innovators are rewarded with higher profit.
C) Consumers can transmit their preference for product quality and variety by way of their "dollar votes" cast in the marketplace.
D) Since price is freely set based on supply and demand, there are few shortages or surpluses.

Question

Quizplus · Accepted Answer

A key criticism of the market economy is that goods and services are allocated unequally based on ability to pay, which can lead to income inequality and limited access to basic necessities for lower-income individuals.

Which of the Following Is a Key Criticism of the Market