Final answer:
According to Marxist theory, income and wealth are determined by one's relation to the means of production, which in a capitalist market economy includes resources such as labor, real estate, and financial assets. This concept forms the basis of social stratification between the capitalist class and the working class.
Step-by-step explanation:
According to Marxist theory, income and wealth are determined by a relationship to the means of production. In a market economy, such as that of the United States, income is generated from ownership of resources or assets, which are considered the means of production. Each factor of production has an associated factor payment. For most individuals, labor is the primary resource they own, and therefore, wages, salaries, and other forms of compensation make up the majority of their income. However, others might own real estate or financial assets like stocks and bonds, which provide them with additional income through rents, dividends, and interest.
Furthermore, Marx's perspective highlights the social stratification that arises from individuals' relationships to production, dividing society into the capitalists who own means of production and the proletariats who sell their labor. This dichotomy leads to inequalities in wealth and power, where the capitalists accumulate wealth at the expense of wage-earning workers who receive a smaller share of the economic pie.