The Marginal Productivity Theory of Distribution Holds That

question 29

Multiple Choice

The marginal productivity theory of distribution holds that

• A)each factor is paid what it deserves.
• B)the owner of each factor is paid the amount that the factor contributes to earnings.
• C)each factor's income depends on how hard it works.
• D)each factor receives an equal share of the revenue from production.

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Definitions:

Globalization

The process of interaction and integration among people, companies, and governments worldwide.

Inequality

The unequal distribution of resources, opportunities, and privileges among individuals or groups within a society, leading to disparities in wealth, power, and status.

Wealth Transfer

The movement of assets or capital from one person, sector, or generation to another, often used to describe changes in wealth due to inheritance or estate planning.

Technological Change

The process of innovation and development in technology that affects economies and societies.