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Seventeenth-century
philosopher John Locke
stated that as much as
Line 99 percent of the value of
(5) any useful product can be
attributed to “the effects of
labor.” For Locke’s intellec-
tual heirs it was only a short
step to the “labor theory of
(10) value,” whose formulators
held that 100 percent of the
value of any product is gen-
erated by labor (the human
work needed to produce
(15) goods) and that therefore the
employer who appropriates
any part of the product’s
value as profit is practicing
theft.
(20) Although human effort is
required to produce goods
for the consumer market,
effort is also invested in
making capital goods (tools,
(25) machines, etc.), which are
used to facilitate the produc-
tion of consumer goods. In
modern economies about
one-third of the total output of
(30) consumer goods is attribut-
able to the use of capital
goods. Approximately two-
thirds of the income derived
from this total output is paid
(35) out to workers as wages and
salaries, the remaining third
serving as compensation
to the owners of the capital
goods. Moreover, part
(40) of this remaining third is
received by workers who
are shareholders, pension
beneficiaries, and the like.
The labor theory of value
(45) systematically disregards
the productive contribution of
capital goods-a failing for
which Locke must bear part
of the blame.
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Q7:
According to the author of the passage, which of the following is true of the distribution of the income derived from the total output of consumer goods in a modern economy?

A. Workers receive a share of this income that is significantly smaller than the value of their labor as a contribution to total output.
B. Owners of capital goods receive a share of this income that is significantly greater than the contribution to total output attributable to the use of capital goods.
C. Owners of capital goods receive a share of this income that is no greater than the proportion of total output attributable to the use of capital goods.
D. Owners of capital goods are not fully compensated for their investment because they pay out most of their share of this income to workers as wages and benefits.
E. Workers receive a share of this income that is greater than the value of their labor because the labor theory of value overestimates their contribution to total output.

What I am thinking:
I can eliminate the options A and B. I am in confusion about the option D and E.
Would any expert explain the options C, D, and E?

Thanks.