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According to the Marginal Productivity Theory of Income Distribution,every Factor

question 117

Multiple Choice

According to the marginal productivity theory of income distribution,every factor of production is paid _____ the equilibrium value of its _____ product.


Definitions:

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.

Optimal Point

The most desirable outcome or position where benefits are maximized, and costs are minimized based on certain criteria or constraints.

Marginal Rate

The rate at which one variable changes with respect to a change in another variable, often used in the context of taxes or interest rates.

Transformation

The process of changing or converting something from one form or state to another, often implying significant alteration.

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