Match the following: List IList II (a) Marginal productivity theory of Distribution (i) Labour theory…
The standard marginal-productivity distribution theory assumes competitive factor and product markets. Ricardo’s comparative-cost theory used the labour theory of value.…
Choose your answer
Match the following:
| List I | List II |
|---|---|
| (a) Marginal productivity theory of Distribution | (i) Labour theory of value |
| (b) Comparative cost theory | (ii) Assumption of non-satiety |
| (c) Indifference curve Analysis | (iii) Product differentiation |
| (d) Monopolistic competition | (iv) Perfect competition |
| (v) Liquidity preference |
Code order: (a), (b), (c), (d).
Answer and explanation
Correct answer D
The standard marginal-productivity distribution theory assumes competitive factor and product markets. Ricardo’s comparative-cost theory used the labour theory of value. Indifference-curve analysis conventionally assumes non-satiety, while monopolistic competition is characterised by product differentiation. Therefore (iv), (i), (ii), (iii); liquidity preference is unused.
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UGC NET Economics