CMA Foundation · Fundamentals of Business Economics and Management · The Fundamentals of Economics
Which of the following is an example of the 'distribution' branch of economic activity?
Determining how national income is shared among workers, landlords and owners as wages, rent and profit is distribution. Harvesting and manufacturing are production activities, and household spending on groceries is consumption.
- AA farmer harvesting rice from his field
- BDetermining how national income is shared among workers as wages, landlords as rent, and owners as profitCorrect
- CA household spending its monthly income on groceries
- DA factory converting steel into vehicle parts
Explanation
Distribution deals with sharing of the national product among factors of production as rent, wages, interest and profit. Harvesting and manufacturing are production, while household spending on groceries is consumption.
Did you get it right without looking?
One question tells you little. A timed set on The Fundamentals of Economics shows your real accuracy, how long you take and where you lose marks.
More The Fundamentals of Economics questions
- Which feature is characteristic of a pure capitalist economy but NOT of a centrally planned economy?
- India's economy has private firms such as Tata and Infosys operating alongside public sector undertakings like Indian Railways and ONGC, wit…
- The supply schedule of a firm is linear: at ₹20 per unit it supplies 100 units and at ₹30 per unit it supplies 160 units. Assuming the same …
- The price of coffee, a substitute for tea, rises sharply. What is the likely effect on the market for tea?
- The demand schedule for a product of a Pune firm is: at ₹20 per unit, 100 units are demanded; at ₹25, 80 units; at ₹30, 60 units. If the dem…
- A mango grower in Ratnagiri supplies 400 crates per week when the price is ₹800 per crate. When the price rises to ₹1,000 per crate, he supp…