If the Marginal Productivity of Labor Was the Sole Determinant

question 84

Multiple Choice

If the marginal productivity of labor was the sole determinant of household income in the U.S., then

• A) no households would be poor according to the official government definition of poverty.
• B) no households would be poor according to a relative definition of poverty.
• C) the distribution of income would be unequal.
• D) every household would have sufficient income to meet biological needs.

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Definitions:

Per Capita GDP

The measure of a country's economic output per person, calculated by dividing the Gross Domestic Product by the total population.

Upper Volta

The former name of the West African country now known as Burkina Faso, until it was renamed in 1984.

Lower Volta

A region in Ghana, characterized by the Volta River's lower part, significant for its hydroelectric projects and agriculture.

Aggregate Production

The total output of goods and services produced by an economy over a specific time period.