Unit 2.12 · The Market’s Inability to Achieve Equity
Inequality in the Free Market
AO2HL
Syllabus Requirement
Examines how market mechanisms, left unregulated, may lead to unequal distribution of income and wealth across individuals and households.
Assessment Objectives
AO2Application and Analysis
Summary
The free market economy can lead to an unequal distribution of income and wealth among individuals and households. This inequality is often viewed as harmful to societal well-being, as it affects living standards across the economy.