Which Theory Looks at Three Classes: Those Who Own the Means

question 26

Multiple Choice

Which theory looks at three classes: those who own the means of production,higher-paid laborers,and lower-paid laborers?

• A) Split labor market theory
• B) Internal colonialism theory
• C) Culture of poverty theory
• D) Marxist theory

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Definitions:

Rival Good

A type of good that cannot be consumed by more than one person at the same time, because its consumption by one person reduces its availability for others.

Marginal External Cost

The additional cost to society that arises from one more unit of a good being produced, not considered by the producer.

Optimal Fee

The best possible charge for a service or product that maximizes profit without discouraging consumers from buying.

Profitability

The degree to which a business or activity yields profit or financial gain.