An Important Assumption Underlying the Marginal Productivity Theory of Income

question 213

Multiple Choice

An important assumption underlying the marginal productivity theory of income distribution is that:

• A)product markets are monopolistically competitive.
• B)factor markets are perfectly competitive.
• C)the relevant value of the marginal product is not the equilibrium value.
• D)the firm does not own any land or physical capital.

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Definitions:

Mississippi Valley

A large geographical area in the United States drained by the Mississippi River, encompassing various states and characterized by rich soil and diverse ecosystems.

Indian Resistance

Refers to the various acts of opposition and warfare by Native American tribes against European colonization, U.S. expansion, and policies from the 17th to the 19th centuries.

Pueblo Revolt

A 1680 uprising of Indigenous Pueblo people against Spanish colonial rule in present-day New Mexico, leading to temporary restoration of their autonomy.

European Dominance

The historical period when European powers exerted major economic, political, and cultural influence over other parts of the world.