The Marginal Productivity Principle Demonstrates That Distribution Under a Capitalist

question 154

True/False

The marginal productivity principle demonstrates that distribution under a capitalist system is ethically valid.

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Definitions:

Federal Budget Deficits

Occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings.

Inflow of Funds

The movement of money into an organization, sector, or economy for investment, consumption, or other purposes.

Inflationary Gap

The difference between the actual output of an economy and the output it would produce if it were at full employment, indicating higher demand than supply, leading to inflation.

Taxes

Mandatory financial charges imposed by governments on individuals, corporations, and transactions to fund public expenditures.