Which of the following statements is true concerning income inequality?

Question

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A free market economy often results in an unequal distribution of income due to factors such as differences in education, skills, and work experience, as well as varying opportunities and resources. While government policies and initiatives can help mitigate income inequality, the free market by itself tends to produce unequal outcomes. Choices A and B are incorrect as they make broad generalizations about all poor and rich countries, which may not necessarily be true. Choice C is incorrect as the government does have various tools such as taxation and social programs that can impact income inequality.

Which of the Following Statements Is True Concerning Income Inequality