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

The marginal productivity theory of income distribution is criticized because it does not account for income derived from inherited property, which is not based on productivity.

The Marginal Productivity Theory of Income Distribution Has Been Criticized