Meaning of Distribution
Distribution in the present context. we do not mean the distributive activities middle men. “The economics or distribution,” says Chapman. “accounts ng of the wealth produced by a community among the agents, or the owners which have been active in its production.”! The theory of distribution is concerned with the evaluation of the services of the factors of production, a study of the conditions of demand for the influences that bring about changes III their market price
For instance, in the factor market, it is not acres of land which are being bought or sold but the services of land. Similarly neither labour nor capital goods are being bought and sold but the services of labour and of capital. Thus, rent is not the price of land but the price of service or the use of land wages, the price of service or labour interest. the price of the use of capital and profit. the reward for entrepreneur’s services.
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