The Marginal Productivity Theory of Income Distribution Has Been Criticized

question 24

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.