3. Ownership of productive factors
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Luck and Connections
4.
5. Marginal productivity
- the income of the factor of production is
equal to the value of its marginal product.
Needs
- determine the amount of income of
families or individuals.
6. Social usefulness
- Jobs which are more useful to society are
paid higher.
Equality
- all members of society receive an equal
amount of income.
7. - Refers to payment of the factors
of production.
- determined by supply and
demand.