Practice IB Economics Topic 2.12 the Market’s Inability to Achieve Equity with authentic exam-style questions for both SL and HL students. This question bank focuses on the exact syllabus content for 2.12 the Market’s Inability to Achieve Equity and mirrors Paper 1, 2, 3 style where relevant.
Get instant solutions, detailed explanations, and build confidence with questions aligned to IB examiner expectations.
(a) how the inheritance of wealth in a free market economy can lead to persistent inequalities across generations.
(b) does the intergenerational transmission of wealth justify treating the free market's failure to achieve equity as a form of market failure? Use real-world examples.
(a) how discrimination in labour markets can lead to an unequal distribution of income within a free market economy.
(b) the extent to which inequities arising from labour market discrimination represent a failure of the free market. Use real-world examples.
(a) how the existence of market power in a free market economy may contribute to an unequal distribution of income.
(b) the extent to which inequalities arising from market power constitute a market failure. Use real-world examples.
(a) Using a diagram, how the ownership of capital in a free market economy may lead to a concentrated distribution of wealth.
(b) the view that, in free market economies, the dynamics of capital ownership make rising inequality unavoidable. Use real-world examples.
(a) Using a diagram, how differences in returns to factors of production in a free market may contribute to inequality of income.
(b) the view that inequities arising in free factor markets cannot be corrected without significant government intervention. Use real-world examples.
