 Intelligence and talents

 Education and Training
 Unpleasant and Risky jobs

 Ownership of productive factors
Zobel de Ayala
 Luck and Connections

 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.

 Social usefulness
- Jobs which are more useful to society are
paid higher.
 Equality
- all members of society receive an equal
amount of income.

- Refers to payment of the factors
of production.
- determined by supply and
demand.