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The Marginal Productivity Theory of Income Distribution Has Been Criticized

Question 24

Multiple Choice

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.

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