2.12 Markets Create Inequalities by Corbin Duckworth https://padlet.com/2024cduckworth/z3rm19rte2mdf15w en-us 2023-04-12 23:03:40 UTC 2023-04-12 23:18:57 UTC hello@padlet.com 2.12 Markets Create Inequalities 2024cduckworth https://padlet.com/2024cduckworth/z3rm19rte2mdf15w/wish/2552210616 The operations of the free market may result in an unequal distribution of income and wealth in the economy.

]]> 2023-04-12 23:07:26 UTC https://padlet.com/2024cduckworth/z3rm19rte2mdf15w/wish/2552210616 The circular flow of income 2024cduckworth https://padlet.com/2024cduckworth/z3rm19rte2mdf15w/wish/2552213882 Economists use income and wealth as indicators of living standards for individuals, households, and the economy as a whole.

The circular flow of income model can be used to explain the free market economy’s ability to achieve equity in the distribution of income and wealth.

Income inequality refers to income being unevenly distributed in a community or country, while wealth inequality is the unequal distribution of fixed assets across the economy.]]> 2023-04-12 23:13:25 UTC https://padlet.com/2024cduckworth/z3rm19rte2mdf15w/wish/2552213882 Where does this inequality come from? 2024cduckworth https://padlet.com/2024cduckworth/z3rm19rte2mdf15w/wish/2552215209 Essentially, income inequalities arise because labor and capital resources are compensated differently.

]]> 2023-04-12 23:15:55 UTC https://padlet.com/2024cduckworth/z3rm19rte2mdf15w/wish/2552215209 Indication that inequality is present 2024cduckworth https://padlet.com/2024cduckworth/z3rm19rte2mdf15w/wish/2552216224 If the sum of leakages (S + T + M) exceeds the sum of injections (I + G + X), then national income and employment will fall, resulting a recession in the country.

If the total value of imports exceeds that of exports (M > X), the net leakage of income from the economy causes greater inequalities between low-income and high-income countries. 

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