Large income differences will be eradicated if the market mechanism is working well.

Name: Large income differences will be eradicated if the market mechanism is working well.
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Question

Quizplus · Accepted Answer

The market mechanism primarily aims at maximizing profit and may not address income inequality issues. It only distributes resources according to willingness and ability to pay, which can lead to large income differences between individuals. Government intervention may be necessary to address income inequality.

Large Income Differences Will Be Eradicated If the Market Mechanism