One objection to the marginal productivity theory of income distribution is the absence of large disparities in income between men and women and various ethnic groups.

Question

Quizplus · Accepted Answer

The absence of large disparities in income between men and women and various ethnic groups is actually a criticism of the marginal productivity theory of income distribution. The theory suggests that individuals are paid according to their productivity, but this may not always be the case due to various factors such as discrimination and unequal access to education and opportunities.

One Objection to the Marginal Productivity Theory of Income Distribution