2016 · Q27
Which of the following statements best describes the content of theory of distribution?
Indian EconomyGrowth and sectors
- AThe distribution of income among different individuals in the economy
- BThe distribution of income between the centre and the state governments
- CThe principle of just distribution of wealth and income
- DThe distribution of income between the owners of factor resources
Explanation
The theory of distribution (Ricardo, marginal productivity theory) explains how the national income is divided among the owners of the factors of production — wages to labour, rent to land, interest to capital, profit to enterprise. It is not about individuals in general, Centre–State finances, or normative justice. Hence (D).