Question

Under price mechanism, the inequalities of wealth grows over time because of the _____________.

• A. meritorious claim to social wealth
• B. right to inheritance
• C. both A & B
• D. neither A nor B

Answer 1

Answer: (B)

right to inheritance

Price mechanism refers to the mechanism where price directs the flow of goods and services in the market as it directs the supply by the production sector i.e supply will increase if price increases and vice-versa and the demand sector i.e demand will increase if price decreases and vice-versa. This leads to distribution of goods and services according to the purchasing power of the individuals which brings inequality in the distribution channel which is inherited by generation to generations.