According to the text, a private economy may generate a distribution of income that is not considered to be satisfactory because:
A) workers get paid their marginal products.
B) there is an unequal distribution of talent.
C) the government will take care of people who suffer handicaps.
D) perfectly competitive labor markets misallocate resources.

Question

Quizplus · Accepted Answer

The text states that a private economy may generate an unsatisfactory distribution of income due to an unequal distribution of talent. This implies that some individuals may have more skills or abilities that are valued highly in the marketplace, leading to higher wages and income, while others may have less valued skills and receive lower wages and income. This unequal distribution of talent can lead to a concentration of wealth and income in the hands of a few, which can be perceived as unfair or inefficient by some.

According to the Text, a Private Economy May Generate a Distribution