Q.What is meant by distribution ?

Distribution is the branch of economics that studies how national income is divided among the factors of production as rent, wages, interest and profit.

Distribution is concerned with the way the total product or national income produced in an economy is shared among the agents that helped produce it. Since production is a joint effort of the four factors, each factor must receive a share:

• Land receives rent,
• Labour receives wages,
• Capital receives interest, and
• Organisation/Entrepreneur receives profit. …