An Objection to the Marginal Productivity Theory of Income Distribution

question 39

True/False

An objection to the marginal productivity theory of income distribution is that many people believe it is a moral justification for the unequal distribution of income.

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Definitions:

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs for production.

Joint Operation

A business activity undertaken by two or more parties who maintain joint control and share both the assets and liabilities related to the operation.

Accounting Entry

A record that represents a transaction in the accounting books of a company.

Joint Control

Joint control exists in a business arrangement when more than one party has the power to govern the financial and operating policies of an economic activity to benefit from it.