The marginal productivity theory of income distribution suggests that:
A. government should subsidize the most productive workers through a system of transfer
payments.
B. each individual should receive income based on his or her contribution to total output.
C. resource owners should receive income based on the idea of "from each according to his
ability, to each according to his wants."
D. resource owners should receive income based upon their needs.
Answer: B
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The price of peaches goes up and I observe you buying more strawberries. This implies that strawberries must be an inferior good.
Answer the following statement true (T) or false (F)
The opportunity cost of going to college consists of more than just the tuition that will be paid
a. True b. False
Which of the following would be better purchased from one who specializes in making them or producing them yourself?
a. A remote control b. spaghetti sauces c. strawberry jam d. chocolate chip cookies
Euro-pessimists point out that:
A) rates of economic growth and inflation have converged to abysmally low levels in all Eurozone countries. B) there are still wide differences in rates of economic growth and inflation among Eurozone countries. C) the euro has appreciated considerably against the U.S. dollar. D) inflation rates have converged, but rates of economic growth have diverged among Eurozone countries.