According to the Marginal Productivity Theory of Income

question 44

Multiple Choice

According to the marginal productivity theory of income,

• A)the greater the quantity of resources owned by an individual, the greater his incentive to increase productivity and his income.
• B)the average income received by an individual who supplies resources is influenced by the resources owner's marginal productivity.
• C)the income received by an individual who supplies labour services equals the incremental benefit generated to the firm by that individual's labour.
• D)the income received by an individual who supplies labour services equals the profit generated to the firm by that individual's labour.

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Definitions:

Implied Warranties

Unspoken, unwritten promises ensured by law that guarantee the goods sold meet certain criteria of quality and usability without expressly stating them.

Express Warranty

A written or verbal promise made by a seller to a buyer about the quality or nature of a product, offering assurance that certain facts or conditions are true.

Magnuson-Moss Warranty Act

A federal law in the United States that governs warranties on consumer products to ensure protection and rights for consumers.

Full Warranty

A comprehensive guarantee that a manufacturer or seller makes regarding the condition of its product, including a promise to repair or replace defective items.