The marginal productivity theory of income distribution suggests that
A)government should subsidize the most productive workers through a system of transfer payments.
B)each individual receives income based on his or her contribution to total output.
C)resource owners should receive income based on the idea of "from each according to his ability, to each according to his wants."
D)resource owners should receive income based upon their needs.

Question

Quizplus · Accepted Answer

The marginal productivity theory of income distribution posits that the income one receives is determined by one's contribution to the total output or production. This theory emphasizes the economic principle that payment or income is based on the productivity or marginal contribution of an individual to the production process.

The Marginal Productivity Theory of Income Distribution Suggests That