Income distribution according to productive contribution is____________?
Correct answer: A. efficient but inequitable
- A. efficient but inequitable
- B. inefficient but equitable
- C. efficient and equitable
- D. a tenet of communism
Explanation
Payment according to productive contribution may allocate resources efficiently, but it does not guarantee equal or socially fair incomes because people differ in skills, assets, and opportunities. It is therefore described as efficient but potentially inequitable.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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