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Which of the following is NOT a likely consequence of the free market system of water distribution?

1) Increased competition and lower prices
2) Unequal access to clean water
3) Environmental degradation
4) Improved water quality

User Agnsaft
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1 Answer

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Final answer:

2) Unequal access to clean water

Improved water quality is not a likely consequence of a free market system of water distribution,

as such a system can lead to increased competition and lower prices but may also exacerbate unequal access and environment degradation without proper regulations.

Step-by-step explanation:

In discussing the likely consequence of the free market system of water distribution, we would first need to identify which of the given outcomes would not be typical of such a system.

The options presented include increased competition and lower prices, unequal access to clean water, environmental degradation, and improved water quality.

Generally, a free market system often leads to increased competition as various companies look to gain market share. This competition can lead to lower prices for consumers.

However, this often assumes equal access to the market and does not consider the unequal distribution of resources like water. In terms of access to clean water, a free market system does not automatically equate to equitable access. In fact, it could exacerbate unequal access as those with more resources are able to secure better services, leaving those with few resources to struggle.

Environmental degradation is a possible result due to the lack of regulation in free markets that can see companies exploiting resources unsustainably to reduce costs and maximize profits. As for improved water quality, this is not a guaranteed outcome of a free market in water distribution.

If anything, without regulations, companies may cut corners, leading to possible degradation of water quality. Therefore, improved water quality is NOT a likely consequence of the free market system of water distribution.

User Cristian M
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