Asked by
Brahim Bijdir
on Nov 05, 2024Verified
Some contend that the outcome of any free market is ultimately inequitable because
A) public goods will be underprovided by the government.
B) some people become rich while others remain very poor.
C) firms are not forced to take external costs into account.
D) periods of unemployment and inflation still occur.
Inequitable
Refers to a lack of fairness or justice in a situation or distribution of resources.
Public Goods
Commodities or services that are provided without profit to all members of a society, either by the government or a private individual or organization.
External Costs
Costs incurred as a result of an economic activity that are not reflected in the market price, often shouldered by society or the environment.
- Master the ideas underlying market efficiency and equity.
Verified Answer
AH
Learning Objectives
- Master the ideas underlying market efficiency and equity.