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Marginal Productivity Theory about Income Distribution

Differences into the demands for various resources, into the talents and kinds of labor people possess, within labor/leisure trade-offs, into inheritances, and by luck all play roles into explaining: (1) differences in income among individuals. (2) the term structure of interest rates. (3) differential growth rates among economies. (4) profit structures for different industries. (5) distributions of power in between special interest groups.

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