The marginal productivity theory of income distribution has been criticized because
A)the resulting distribution of income is likely to be too equal to maintain production incentives.
B)income from inherited property is inconsistent with the theory.
C)purely competitive conditions characterize most resource markets.
D)it fails to recognize that resource demand is derived from product demand.

Question

Quizplus · Accepted Answer

Income from inherited property does not align with the marginal productivity theory of income distribution because this theory suggests that income is determined by the productivity of the resources an individual contributes to the production process, not by what is inherited.

The Marginal Productivity Theory of Income Distribution Has Been Criticized