QUESTION IMAGE
Question
according to the video, what is a major disadvantage of a market economy?
this question is worth 10 point(s)
income inequality
no motivation for innovation
lack of consumer choice
overregulation
In a market economy, resources and rewards are distributed based on market outcomes, which often leads to a gap between high-earning individuals/groups and those with lower incomes, making income inequality a key disadvantage. The other options are incorrect: market economies encourage innovation via profit incentives, offer extensive consumer choice, and are characterized by less (not over) regulation compared to planned economies.
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
A. Income inequality