According to the Neoclassical Theory of Distribution, If Firms Are

question 67

Multiple Choice

According to the neoclassical theory of distribution, if firms are competitive and subject to constant total income in the economy is distributed:

• A)only to the labor used in production.
• B)partly between labor and capital used in production, with the surplus going to the owners of the firm as profits.
• C)equally between the labor and capital used in production.
• D)between the labor and capital used in production, according to their marginal productivities.

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Definitions:

Mechanism

Describes the step-by-step process through which reactants are converted to products in a chemical reaction, including the breaking and formation of bonds.

Intermediates

Molecules or ions that appear in the middle stages of a chemical reaction but do not appear in the overall reaction equation.

Electrons

Subatomic particles with a negative electrical charge, found in orbitals surrounding an atom's nucleus, and participating in chemical bonding and conductivity.

Alternating Copolymer

A copolymer where two different monomers are linked in an alternating sequence, offering unique properties compared to random or block copolymers.