Theories Of Distribution — Important Questions
Telangana Open School (TOSS) · Class 12 · Economics
44 important questions from Theories Of Distribution for Telangana Open School (TOSS) Class 12 Economics, with answers. Written for the board exams 2027.
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Important Questions from Theories Of Distribution
Which of the following is NOT a factor of production?
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Money
Money is not a factor of production; it is a medium of exchange. The factors are land, labour, capital, and entrepreneur.
What does functional distribution refer to?
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Distribution of income to factors of production
Functional distribution refers to how income is divided among the factors of production like rent, wages, interest, and profit.
Personal distribution of income refers to:
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Income distributed among individuals
Personal distribution deals with how national income is shared among individuals, often highlighting income inequality.
What is the main idea of marginal productivity theory?
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Price equals marginal productivity
According to marginal productivity theory, a factor is paid based on its marginal contribution to total output.
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