e) capitalism and inequalityu

• What economic system is at the heart of free market economics?

  Capitalism
• Why is inequality considered inevitable under capitalism?

  Because of varying skill levels among workers
• What do workers with higher skills receive?

  Higher wages
• What do workers with little to no skills receive?

  Little to no wage
• How does higher income affect asset acquisition?

  It allows individuals to acquire more assets
• What happens when individuals keep acquiring assets?

  They achieve higher levels of income
• What challenge do individuals with lower income face regarding assets?

  They find it hard to acquire assets
• Why are the principles of capitalism considered important?

  They raise productivity and output through incentives
• What is a long-term cost of capitalism regarding wealth distribution?

  Concentration of wealth among few individuals
• What is the consequence of extreme wealth concentration in capitalism?

  Many individuals lose out on wealth
• What has been argued as necessary to address income inequality in capitalism?

  Checks and balances
• What does the call for government intervention in capitalism aim to achieve?

  To limit income and wealth inequality