Refer to Figure 23-2. If the U.S. economy is currently at point ...

[anshika]

Refer to Figure 23-2. If the U.S. economy is currently at point K, which of the following could cause it to move to point N?
 
  A) Household wealth declines.
  B) The price level in the United States falls relative to the price level in other countries.
  C) The interest rate rises.
  D) Congress abolishes investment tax incentives.

Question 2

What is the marginal productivity theory of income distribution?
 
  What will be an ideal response?

[macagnavarro]

Answer to Question 1

B

Answer to Question 2

The marginal productivity theory of income distribution concludes that each individual's income is determined by the marginal productivity of the factors of production (such as labor, capital, and natural resources) that the individual owns.