What is a disadvantage of a capitalist economic system?

Study for the FBLA Intro to Business Concepts Test. Boost your knowledge with flashcards and multiple choice questions, each question provides hints and explanations. Ace your exam preparation!

In a capitalist economic system, the market is largely driven by supply and demand with minimal government intervention, which often results in varying levels of wealth accumulation among individuals and businesses. This system rewards innovation and efficiency, leading to significant economic growth and technological advancements. However, this can also lead to significant disparities in income and wealth distribution.

As successful individuals and corporations prosper, those who may lack access to capital, education, or opportunities may find themselves at a disadvantage. Consequently, the gap between the wealthy and those with fewer resources can widen, creating pronounced income inequality within society. This phenomenon can contribute to social tensions and feelings of disenfranchisement among lower-income groups, as they see a stark contrast between their economic status and that of wealthier individuals or corporations.

In contrast, the other options highlight features that are not characteristic of a capitalist system. For instance, while capitalism fosters innovation, it doesn't inherently ensure equality or a fair distribution of resources. These elements are more aligned with socialist or mixed economic frameworks, which prioritize equity and resource redistribution.

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