Asked by Andro Meikhaeil on Jun 19, 2024

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Differences in talent and ability of workers resulting in differences in their wages is consistent with the marginal productivity theory of income distribution.

Human Capital

Human capital is the collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or the community.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, keeping all other inputs constant.

  • Grasp the marginal productivity theory of income distribution and its implications.
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SM
sarah millerJun 21, 2024
Final Answer :
True
Explanation :
According to the marginal productivity theory, the wage rate of a worker is proportional to his/her marginal productivity. Since workers with higher levels of talent and ability are likely to have higher marginal productivity, differences in wages between workers can be attributed to differences in their talent and ability. Therefore, the statement is true.