According to the Marginal Productivity Theory of Income Distribution,every Factor

question 117

Multiple Choice

According to the marginal productivity theory of income distribution,every factor of production is paid _____ the equilibrium value of its _____ product.

• A)exactly;marginal
• B)more than;marginal
• C)less than;marginal
• D)exactly;average

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Definitions:

Discount

A deduction from the usual cost of something, or the process of determining the present value of future cash flows by adjusting for the time value of money.

Semiannual Coupon

Interest payments made twice a year by a bond issuer to the bondholders.

Current Interest Rates

The interest rate present at the moment in the financial market, affecting loans and savings.

Market Price

represents the current price at which an asset or service can be bought or sold in a marketplace.