The marginal productivity theory of income states that a person's total income is determined by
A)the amount and productivity of factors of production the individual owns.
B)how much the individual works.
C)how profitable the firm the individual works for is.
D)how much the individual has inherited.

Question

Quizplus · Accepted Answer

The marginal productivity theory of income states that a person's total income is determined by the amount and productivity of factors of production (land, labor, capital) the individual owns. The more productive factors of production one owns, the higher their income will be.

The Marginal Productivity Theory of Income States That a Person's