Asked by
harshita singh
on Nov 26, 2024Verified
The exercise of market power by suppliers in resource markets tends to
A) reduce income inequality, ensuring that all workers receive fair wages.
B) have little impact on the distribution of income.
C) increase income inequality by raising incomes of those able to "rig the market."
D) increase income inequality but is offset by the exercise of market power in product markets.
Income Inequality
The unequal distribution of income among individuals or households in an economy, leading to various social and economic issues.
Market Power
The ability of a company or group of companies to control prices or exclude competition within a market or industry.
Resource Markets
Markets where resources (like labor, capital, and raw materials) that are used to produce goods and services are bought and sold.
- Examine the effects of income and wealth disparity on society and the economy.
Verified Answer
KA
Learning Objectives
- Examine the effects of income and wealth disparity on society and the economy.