One of the problems of allowing goods and services to be distributed solely by the market is that income is unequally distributed, especially here in the US. Why would the market produce an inadequate level of some goods and services, which society might view as critical for peoples’ well being, while at the same time, use a significant quantity of resources to produce goods and services that contributed little to society’s overall well being? Your answer should contain at least two examples of goods and services that are critical and inadequately produced and two examples of goods and services that are largely wasteful and overproduced (4 examples in total). Remember your answer should revolve around the distribution of income, and should be focused only on the United States.

One of the problems of allowing goods and services to be distributed solely by the market is that income is unequally distributed, especially here in the US. Why would the market produce an inadequate level of some goods and services, which society might view as critical for peoples’ well being, while at the same time, use a significant quantity of resources to produce goods and services that contributed little to society’s overall well being? Your answer should contain at least two examples of goods and services that are critical and inadequately produced and two examples of goods and services that are largely wasteful and overproduced (4 examples in total). Remember your answer should revolve around the distribution of income, and should be focused only on the United States.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter19: Using Economics To Understand The World Around You

Section: Chapter Questions

Problem 3E

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