Which is not a criticism of the marginal productivity theory of distribution?
A)It assumes that the existing distribution of ownership factors is fair and just when it may not be.
B)It does not tell us much about real policy matters.
C)A factor's MRP does not in any way correspond to productive effort.
D)It is inconsistent with most empirical observations.

Question

Quizplus · Accepted Answer

The statement "It is inconsistent with most empirical observations" is a criticism of the marginal productivity theory of distribution, not a non-criticism. Options A and C are criticisms, and option B is a neutral comment that does not constitute a criticism.

Which Is Not a Criticism of the Marginal Productivity Theory