A market system tends to create inequality.

Question

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In a market system, individuals and firms with more resources and skills often have an advantage over those with less, allowing them to amass more wealth, assets, and power, leading to income and wealth inequality. This is because a market system rewards individuals and firms based on their ability to produce goods and services that meet consumer demand, and not on their need, effort, or contribution to society. Therefore, some people may be able to accumulate significant wealth while others struggle to make ends meet. Despite the potential benefits of a market system, such as economic growth, innovation, and efficiency, the issue of inequality remains a critical challenge for policymakers and society as a whole.

A Market System Tends to Create Inequality