According to the Functional Distribution of Income,in the United States

question 60

Multiple Choice

According to the functional distribution of income,in the United States

• A) capital earns most of the income.
• B) labor earns most of the income.
• C) land earns most of the income.
• D) entrepreneurs earned most of the income.
• E) the income earned by capital and labor are approximately equal.

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Definitions:

Diminishing Marginal Returns

The principle that adding more of one factor of production, while holding others constant, will eventually yield lower additional outputs.

Total Product

The overall quantity of output produced by a firm from a given quantity of inputs.

Constant Rate

A consistent, unchanging speed or pace at which something occurs or changes over time.

Diminishing Marginal Returns

The principle that adding an additional factor of production results in a smaller increase in output after a certain point.