What is the marginal productivity theory of income distribution?
What will be an ideal response?
The marginal productivity theory of income distribution concludes that each individual's income is determined by the marginal productivity of the factors of production (such as labor, capital, and natural resources) that the individual owns.
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A price control is:
A) a market determined equilibrium price. B) a non-market price imposition. C) the price at which quantity demanded equals quantity supplied. D) the price that maximizes social surplus.
If the Fed injects reserves into the banking system and they are held as excess reserves, then the money supply
A) increases by only the initial increase in reserves. B) increases by only one-half the initial increase in reserves. C) increases by a multiple of the initial increase in reserves. D) does not change.