Theories Of Distribution
Telangana Open School (TOSS) · Class 12 · Economics
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Quick Quiz: Theories Of Distribution
0/4Tap an answer to check it instantly. No sign-up needed for these 4.
What is the reward paid for the use of land?
Which of the following is known as the reward for labour?
What is the return for the use of capital called?
Profit is the reward for which factor of production?
Sample Questions
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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