The Marginal Productivity Theory of Income Distribution Has Been Criticized

question 120

Multiple Choice

The marginal productivity theory of income distribution has been criticized because

• A)the resulting distribution of income is likely to be too equal to maintain production incentives.
• B)income from inherited property is inconsistent with the theory.
• C)purely competitive conditions characterize most resource markets.
• D)it fails to recognize that resource demand is derived from product demand.

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Definitions:

Fleshy Fruits

Types of fruits that have a soft, edible part developed from the ovary of a flower, typically containing seeds.

Embryo Sporophyte

An early stage in the life cycle of plants where the organism is in a form that will develop into a spore-producing plant.

Mature Ovule

The part of a plant that develops into a seed after fertilization, containing a female gametophyte and embryo sac.

Seed Coat

The outer protective layer of a seed that safeguards the embryonic plant from mechanical damage, pests, and diseases.