Use the Following to Answer Questions

question 198

Multiple Choice

Use the following to answer questions :
Figure: Equilibrium in the Labour Market
-According to the marginal productivity theory of income distribution,if a unit of labour is paid more than a unit of capital,it is because,at the equilibrium quantity of each factor,the value of the _____ product of labour is _____ product of capital.

• A) marginal;greater than the marginal
• B) marginal;less than the marginal
• C) average;greater than the average
• D) average;less than the average

---

Definitions:

Domestic Price

The price at which goods or services are sold within a country's borders, unaffected by import or export tariffs.

Equilibrium Level

The state at which market supply and demand balance each other, resulting in stable prices.

Exports And Imports

The selling of goods and services produced in one country to another country (exports) and the buying of goods and services from another country (imports).

World Price Level

The average of prices for goods and services across different countries, adjusted for exchange rate differences, reflecting the global cost of living.