This morning on Facebook, you clicked a link to an article about the downfall of a multinational entertainment company. The report shows that despite profits plummeting 35%, the company's CEO received a 9% raise. As you read on, you learn that the company's board of directors approved undeserved salary increases. This is an example of how inequality and greed can infiltrate the free-market economic system.

Question

Quizplus · Accepted Answer

One of capitalism's limitations is the fact that it has brought "inequality" to many parts of the world. Without government regulation, greed can perpetuate in this type of economic system. Business owners and business executives can often negotiate higher salaries and bonuses that are not based on performance.

This Morning on Facebook, You Clicked a Link to an Article