A major disadvantage of a capitalist economy is that it?

A. leads to low production of goods and services
B. requires large number of officials to operate
C. considers individual consumers’ satisfaction
D. worsens income inequality among the citizens

Correct Answer:

Option D – worsens income inequality among the citizens

Explanation

One of the disadvantages of capitalism is that wealth and control of means of production are concentrated in the hands of every few individuals. Rich families always control the wealth of society.