Question

Which of these is an adverse effect of capitalism?
The productivity of the system is very low.

Answer 1

“It leads to an unequal distribution of wealth"

Explanation: Just took the test on plato got a 5 out of 5 :)

Answer 2

“It leads to an unequal distribution of wealth” is an adverse effect of capitalism.

Explanation:

The capitalistic system favours the individuals who possess 2 things:

• Business ideas

• Resources/Capitals

But in a capitalist system, the profit that is generated by the business will all be belong to the capital owner (after being cut down by taxes) and other workers only receive the amount of salary that agreed upon before in the employment contract. This is the reason which had an adverse effect of capitalism.