When Each Factor Is Paid an Amount Equal to the Value

question 69

Multiple Choice

When each factor is paid an amount equal to the value of the marginal product of the last unit of that factor employed in the factor market as a whole,this is:

• A)the marginal productivity theory of income distribution.
• B)diminishing marginal product.
• C)the factor distribution of income.
• D)the efficiency wage model.

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Definitions:

Theory X Manager

Describes a management style that assumes employees are inherently lazy and need to be closely supervised and controlled.

Worker Involvement

The participation or engagement of employees in the decision-making processes and operations of their workplace.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Job Rotation

A strategy where employees rotate between different jobs within an organization, allowing them to gain experience and skills in various areas.