Economics · May / June 2022 · Paper 12 · Question 5
In recent years, a government has started to make more use of the free market system. However, they are doing it very slowly to avoid the disadvantages that a free market system might bring. What is a possible disadvantage of the free market system?
- Adecreased incentive to work
- Bdecreased levels of pollution
- Cincreased efficiency
- Dincreased inequality of income
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Correct answer: D. increased inequality of income
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