In economic terms incomes are distributed according to________________?
Correct answer: A. a person's marginal productivity
- A. a person's marginal productivity
- B. whom one knows
- C. which skills one has
- D. innate talent
Explanation
In the marginal-productivity theory of distribution, a factor's income is linked to the value of its marginal product, meaning the extra output generated by employing one more unit. Skills and talent can affect productivity, but they are not the stated distribution rule.
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