Explain the meaning of distribution.

Distribution of income earned by the exchange of goods and service among different factor of production is called distribution. Goods are produced by the combined effort of all the factor of production

to make final product out of raw material requires land, labour, capital, entrepreneur and management, when the final product is consumed, it generate the profit and this profit needs to distributed among these factor of production, like rent is given out of profit, salaries are paid to labour, entrepreneur withdraw his salary or profit, some amount is invested in machine and salaries of management staff.