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In a free economy, inequalities of income are mainly due to?

In a free-market (capitalist) economy, wide and persistent inequalities of income and wealth are primarily attributable to the institutions of private property and…

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In a free economy, inequalities of income are mainly due to?

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In a free-market (capitalist) economy, wide and persistent inequalities of income and wealth are primarily attributable to the institutions of private property and inheritance, which allow income-generating capital and wealth to accumulate and be transmitted across generations. While differences in the marginal productivity of labour cause variations in wage earnings, private property combined with inheritance is the principal institutional source of overall income inequality.

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