What arguments suggest that an unequal wealth distribution is not a problem? What arguments suggest that an unequal wealth distribution is a problem?
What will be an ideal response?
Those who believe that an unequal distribution of wealth is not a problem argue that it is a natural and inevitable consequence of risk taking in a market economy and it provides the incentive necessary to motivate entrepreneurs and investors. Those who believe that an unequal distribution of wealth is a problem argue that it can undermine democracy and lead to social conflict.
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In the long run, a reduction in labor supply would cause output to ________ and the aggregate price level to ________
A) fall; rise B) fall; fall C) rise; fall D) rise; rise
Benefits of free trade include all of the following EXCEPT
A) increased world production. B) higher standards of living. C) transmission of new ideas. D) increased international mobility of labor.