Critics of the wealth gap might argue that:

• A. income inequality has no significant impact on access to education or healthcare
• B. the wealth gap is primarily a result of individual choices rather than systemic factors
• C. income inequality can lead to reduced social mobility and increased economic instability
• D. the wealth gap encourages greater innovation and entrepreneurship among all income groups

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the context of the problem, which involves evaluating different statements about the wealth gap and its economic and social impacts.
2. Step 2: Identify the key economic concepts involved, such as income inequality, social mobility, economic instability, and the effects of wealth distribution on society.
3. Step 3: Analyze each statement critically by considering economic theory and empirical evidence related to income inequality and its consequences.
4. Step 4: Recognize that income inequality can affect access to resources like education and healthcare, which in turn influences social mobility and economic stability.
5. Step 5: Conclude that the statement 'income inequality can lead to reduced social mobility and increased economic instability' aligns with mainstream economic understanding, making it the correct answer.