One Objection to the Marginal Productivity Theory of Income Distribution

question 81

True/False

One objection to the marginal productivity theory of income distribution is the existence of large disparities in income between factors of production that should receive the same payment.

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Definitions:

Bonus

Compensation to management and other personnel, based on factors such as increased sales or the amount of net income.

Total Net Assets

Total net assets represent the total value of an organization's assets minus its total liabilities, indicating the net worth of an organization.

Total Capital

The sum of a company's equity, debt, and any other long-term financing.

Admission by Investment

The process of becoming a partner or member in a company or partnership through a financial investment.