CONTRIBUTIVE STANDARD: One of three basic income distribution standards (the other two are equality standard and needs standard). The contributive standard distributes income based on a person's contribution to production. This standard answers the For Whom? question of allocation primarily through the use of prices and markets. The resources used to produce goods that more highly valued society (meaning they better satisfy unlimited wants and needs) command higher prices and thus generate more income to their owners. An actor, for example, who can attract millions of adoring. $7-a-ticket fans to one performance of an action-packed, blockbuster movie produces a good that is more highly valued by society than a philosophy professor who spends all semester teaching a handful of reluctant, $100-a-credit-hour students the finer details of existentialism.

     See also | income distribution | income | distribution standards | needs standard | equality standard | three questions of allocation | efficiency | incentive | value | marginal productivity theory | For Whom? |

CONTRIBUTIVE STANDARD, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2026. [Accessed: September 11, 2026].

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Business investment expenditures that do not depend on income or production (especially national income or even gross domestic product). That is, changes in income do not generate changes in investment. Autonomous investment is best thought of as investment that the business sector undertakes regardless of the state of the economy. It is measured by the intercept term of the investment line. The alternative to autonomous investment is induced investment, which does depend on income.

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