Marginal Productivity Theory Implies That in a Perfectly Competitive Market

question 178

Multiple Choice

Marginal productivity theory implies that in a perfectly competitive market economy, a worker will receive income

• A)equal to the value of her marginal contribution to the production process.
• B)that is greater than the value of her marginal contribution to the production process.
• C)that is less than the value of her marginal contribution to the production process.
• D)greater than, less than, or equal to the value of her marginal contribution to the production process, depending on her ability to negotiate with employers.

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Definitions:

Decades

Periods of ten years, used as a measure of time to indicate duration or historical moments.

Similarity Breeds Liking

A principle suggesting that people tend to form relationships and have more positive feelings towards individuals who are similar to them in terms of beliefs, values, and interests.

Relationships

Pertains to the way in which two or more concepts, objects, or people are connected, or the state of being connected.

Discrimination

Involves the unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.