A Major Criticism of the Marginal Productivity Theory of Income

question 144

Multiple Choice

A major criticism of the marginal productivity theory of income distribution is that

• A)the demand for labor resources is price inelastic.
• B)achieving equality in incomes will take time.
• C)imperfectly competitive firms are only interested in profit maximization.
• D)property resources like land are unevenly distributed, which leads to income inequality.

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Definitions:

Furs

Textiles made from the pelts of animals, historically significant in trade and fashion, but have become controversial due to ethical concerns regarding animal rights.

Exploratory Voyages

Journeys undertaken by explorers to discover unknown lands, map new territories, and establish contacts.

English Colonization

The process of English settlement and establishment of control over regions in North America, the Caribbean, and other parts of the world from the late 16th to the early 18th centuries.

Richard Hakluyt

An English writer and geographer known for promoting the exploration and settlement of North America by the British in the late 16th and early 17th centuries.