Q.What is meant by distribution ?

Distribution is the branch of economics that explains how the national income (the total value of output produced) is divided among the four factors of production as factor rewards — rent, wages, interest and profit.

Production is a joint effort of four factors, so the wealth they create together must be shared among them. Distribution studies the principles that govern this sharing.

• Land → Rent
• Labour → Wages
• Capital → Interest
• Entrepreneur / Organisation → Profit …