Capital Is Paid According to the Value of Its Marginal

question 253

Multiple Choice

Capital is paid according to the value of its marginal product

• A)only if earnings from capital are paid to households in the form of dividends.
• B)only if earnings from capital are kept within firms as retained earnings.
• C)regardless of whether earnings from capital are paid to households in the form of dividends or whether those earnings are kept within firms as retained earnings.
• D)None of the above is correct; unlike labor, capital is a factor of production for which earnings are unrelated to the value of marginal product.

---

Definitions:

Undue Hardship

A condition or situation that requires significant difficulty or expense for an employer to accommodate, often used in the context of employment law.

Accommodate Needs

Refers to adapting or making adjustments to meet the specific requirements of individuals or groups.

Promote Employees

The act of moving employees to a higher position or rank within an organization.

Classify Jobs

involves organizing various occupations into categories based on similar duties, responsibilities, skills, and employment criteria.