The Marginal Productivity Theory of Income States That a Person's

question 4

Multiple Choice

The marginal productivity theory of income states that a person's total income is determined by

• A)the amount and productivity of factors of production the individual owns.
• B)how much the individual works.
• C)how profitable the firm the individual works for is.
• D)how much the individual has inherited.

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Definitions:

Ultrahazardous Activity

An activity that poses an inherent risk of serious harm to people or property, even when utmost care is exercised to prevent harm.

Recklessness

A disregard for or indifference to the safety of oneself or others, often resulting in taking unjustifiable risks.

Fault Standard

A legal measure that determines negligence or responsibility for harm or damages based on failure to act in a reasonable manner.

Licensees

Individuals or entities that are granted permissions by a licensor to engage in certain activities under specified conditions.