Asked by Nicole Alexander on May 02, 2024
Verified
The marginal productivity theory of resource demand suggests that those resources whose productivity levels are high will end up getting a higher share of the economy's income.
Marginal Productivity Theory
An economic theory that suggests the wage or value of a worker's output is equal to the additional production the worker generates.
Resource Demand
The desire and ability of a company or economy to acquire goods or services considered essential for operation.
- Learn the marginal productivity theory of resource demand and its implications for income distribution.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
True
Explanation :
The marginal productivity theory of resource demand posits that the demand for a resource is based on its marginal productivity, meaning resources that are more productive in creating value are paid more, leading to a higher share of the economy's income for those resources.
Learning Objectives
- Learn the marginal productivity theory of resource demand and its implications for income distribution.
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