Micro 8.9

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What is equity?
The notion of fairness in the allocation of economic resources in society.
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What is an inequitable distribution of income?
The way in which income and wealth are distributed in society is considered unfair.
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Who would have access to the greatest share of resources in a market economy with no government intervention?
Those individuals with the greatest ability to pay.
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How would free market capitalists argue for inequality?
They believe inequality creates useful incentives among economic agents that positively influence overall national income and can ‘trickle down’ to poorer members of society, raising overall living standards.
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How would critics of free market capitalism argue against inequality?
They believe inequality creates social tensions between the relatively rich and poor, leading to reduced living standards.
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Other cards in this set

Card 2

Front

What is an inequitable distribution of income?

Back

The way in which income and wealth are distributed in society is considered unfair.

Card 3

Front

Who would have access to the greatest share of resources in a market economy with no government intervention?

Back

Preview of the front of card 3

Card 4

Front

How would free market capitalists argue for inequality?

Back

Preview of the front of card 4

Card 5

Front

How would critics of free market capitalism argue against inequality?

Back

Preview of the front of card 5

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