If income were distributed solely according to marginal productivity,
A)every family would be above the poverty level
B)it would be distributed evenly
C)it would be distributed normally
D)workers in capital-intensive industries would earn less than workers in labor-intensive industries
E)some individuals would not receive any income

Question

Quizplus · Accepted Answer

Marginal productivity theory suggests that income is distributed based on the productivity of each factor of production. Some individuals may not have any productive contribution, thus receiving no income.

If Income Were Distributed Solely According to Marginal Productivity