"To each according to what he or she produces" describes the ________ theory of income determination.

Question

Quizplus · Accepted Answer

The phrase "to each according to what he or she produces" is a central tenet of the productivity theory of income determination. This theory posits that individuals should be compensated based on the value of their contributions to society and the economy, as measured by their level of productivity. In other words, those who produce more should earn more, while those who produce less should earn less. This stands in contrast to other theories of income determination, such as the needs-based theory or the egalitarian theory, which prioritize factors such as social welfare or equality over productivity.

"To Each According to What He or She Produces" Describes