What is a potential disadvantage of capitalism?

Master the Bookout 6600 Business Concepts Test. Practice with engaging flashcards and multiple-choice questions. Understand each concept thoroughly to excel in your exam!

A potential disadvantage of capitalism is that it can lead to inequality. In a capitalist system, resources and wealth are distributed based on individual initiative and success, which can result in significant disparities among different social groups. Those who have access to better education, capital, and opportunities are more likely to succeed and accumulate wealth, while others may struggle to improve their economic situation. This inequality can manifest in various forms, such as income gaps, limited access to essential services like healthcare and education, and reduced social mobility. The concentration of wealth in the hands of a few can ultimately destabilize society and lead to social tensions, creating challenges that need to be addressed by policies aimed at balancing opportunity and support for those less fortunate.

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