Explain different market structures (pure competition, monopoly, monopolistic competition, oligopoly) and the implication of their characteristics on the efficient allocation of scarce resources as well as the potential for market failure.

• Summarize the link between relative inequality and relative economic output / efficiency
• Summarize the textbook's list of causes for inequality

1A. "Governments, efficiency and trade-offs".

Please explain how income and wealth inequality can be argued to decrease efficiency.

2B. "Government Policies to reduce Income Inequality", specifically the section titled -"Causes of Growing Inequality: The Changing Composition of American Households"

Outline what your textbook identifies as the causes of income inequality.Can you think of more reasons?

3B. "Government Policies to reduce Income Inequality", specifically the section titled - "The Trade-off between Incentives and Income Equality"

Redraw the two diagrams titled "The Trade-off between incentives and income inequality" then, explain what each depict.