The theory of distribution relates to which of the following? (1) The distribution of assets (2) The distribution of income (3) The distribution of factor payments (4) Equality in the distribution of the income and wealth

1 Answer

Answer :

(4) Equality in the distribution of the income and wealth Explanation: In economics, distribution theory is the systematic attempt to account for the sharing of the national income among the owners of the factors of production—land, labour, and capital. Traditionally, economists have studied how the costs of these factors and the size of their return—rent, wages, and profits—are fixed. The theory of distribution involves three distinguishable sets of questions. First, how is the national income distributed among persons? Second, what determines the prices of the factors of production? Third, how is the national income distributed proportionally among the factors of production?

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Last Answer :  Equality in the distribution of the income and wealth

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Last Answer :  Reduction of consumption consequent to a rise in prices

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