"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.

Question

Quizplus · Accepted Answer

The statement is consistent with the marginal productivity theory of income distribution, which states that factors of production (such as labor) should be rewarded according to the marginal contribution that each makes to the total output. Therefore, if an income receiver produces more output, they should be paid more.

"Income Receivers Should Be Paid in Accordance with the Value