Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Private ownership of resources allows individuals to accumulate wealth more rapidly.
B
Socialism inherently discourages wealth accumulation.
C
Capitalist economies have more government intervention.
D
Socialism promotes competition among individuals.
Understanding the Answer
Let's break down why this is correct
Answer
A primary reason for greater income inequality in capitalist economies compared to socialist ones is how wealth and resources are distributed. In capitalism, individuals and businesses can own private property and make profits, which often leads to some people becoming very wealthy while others remain poor. For example, if someone starts a successful tech company, they can earn millions, while others may struggle to find jobs that pay a living wage. In contrast, socialist systems aim to distribute resources more equally, often providing basic needs like healthcare and education to everyone, which helps reduce the gap between rich and poor. This difference in how wealth is managed and shared is a key factor in the income inequality seen in these two economic systems.
Detailed Explanation
In capitalist economies, people can own businesses and property. Other options are incorrect because Some think socialism stops people from getting rich; Many believe that more government rules in capitalism leads to less inequality.
Key Concepts
Capitalism
Socialism
Income Inequality
Topic
Capitalism vs. Socialism
Difficulty
easy level question
Cognitive Level
understand
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