Asked by Heather Marie on Jun 09, 2024
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"Income receivers should be paid in accordance with the value of output each produces." This statement is consistent with the
A) monopoly theory of income distribution.
B) marginal productivity theory of income distribution.
C) least-cost, but not profit-maximizing, combination of inputs.
D) concept of compensating wage differences.
Marginal Productivity Theory
An economic theory suggesting that the wage or value of a worker's labor is equal to the additional output generated by employing one more unit of labor.
Income Distribution
Describes how a nation’s total GDP is spread among its population, affecting the economic health and inequality levels within society.
Compensating Wage Differences
Differences in the wages received by workers in different jobs to compensate for the nonmonetary differences between the jobs.
- Identify and explain the concept of marginal productivity and its role in income distribution and resource allocation.
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Learning Objectives
- Identify and explain the concept of marginal productivity and its role in income distribution and resource allocation.
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