Study of Distribution
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Question (English)
The study of how national income is distributed through wages, profits and interest is called:
- Consumption
- Production
- Distribution ✓ Correct
- Allocation
Explanation:
Correct Answer Explanation
The study of Distribution is about how the national income (GDP) is distributed through wages (and salaries), profits, and interest.
Key Points:
- National income = total income from what is produced (called Gross Domestic Product or GDP).
- Division of national income into wages, profits, rents, and interests.
- Income from international trade and investment is excluded in this basic discussion.
Why Other Options Are Wrong
- A (Consumption): Concerns buying decisions.
- B (Production): Concerns what/how to produce.
- D (Allocation): Not the correct term for this division.
📚 About this Topic — CH-1: Introduction
This multiple choice question is from CH-1: Introduction, NCERT Books, Statistics for Economics. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-1: Introduction to strengthen your preparation.
