One criticism of market capitalism is
A)It generates efficient resource allocation
B)Producers are provided incentive to find the lowest cost method of producing goods and services
C)Goods and services are produced according to comparative advantage
D)They are unlikely to produce many goods and services for the poor because the poor lack the ability to pay for the goods and services.

Question

Quizplus · Accepted Answer

Market capitalism focuses primarily on profit maximization, which means that goods and services will only be produced if there is a market demand for them and the consumers have the ability to pay for them. This often results in a lack of provision of goods and services for the poor who cannot afford them, leading to inequality and social problems.

One Criticism of Market Capitalism Is