According to the Marginal Productivity Theory of Income

question 105

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 labor services equals the incremental benefit generated to the firm by that individual's labor.
• D)the income received by an individual who supplies labor services equals the profit generated to the firm by that individual's labor.

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Definitions:

Sensory Adaptation

The process by which the sensitivity to a stimulus decreases over time when the stimulus is constantly present.

Naysayer

A person who expresses negative or pessimistic views.

Yea-Sayer

An individual who tends to agree with or affirmatively respond to suggestions, proposals, or opinions without critical consideration.

Binocular Cues

Visual information taken in by two eyes that enable a sense of depth perception, distance, and three-dimensionality.