DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : G.M.Lakshmi
Designation : Lecturer
Institute : Government Polytechnic for
Women, Suryapet
Branch : DCCP
Semester : VI semester
Major topic : Theories of Distribution
Subject Code : CCP-602
Sub topic : Meaning of distribution and
Types of distribution
Duration : 50 minutes
Teaching Aids : PPT and Animation

CCP602.1 1
Objectives:

On completion of this period, you would be able to:

 Explain the meaning of distribution

 List the various types of distribution

CCP602.1 2
Distribution - Meaning

Distribution Means sharing of income of the

community among its members.

Seligman defines:

“The study of Distribution is primarily a study of

remuneration of the factors of production”

CCP602.1 3
Various factors of production –
rewards for the factors
Factors of production Reward

Land - Rent
Labour - Wage
Capital - Interest
Organization - Profit

CCP602.1 4
Definition:

“Distribution is the division of the fruits of production

among the factors that contribute to the production
process.” --- Knitter

Hence we can say Distribution, like production is a

social problem.

CCP602.1 5
Classification of distribution

D is t r ib u t io n

P e r s o n a l D is t r ib u t io n F u n c t io n a l D is t r ib u t io n

CCP602.1 6
Personal Distribution:

Distribution of income or wealth of a country

among its people.

CCP602.1 7
 p e o p le c la s s ific a t io n

R ic h P oor

t h o s e w h o g e t m o r e in c o m e t h o s e w h o g e t le s s in c o m e

Thus personal distribution helps in studying the income

and wealth inequalities among the different classes of
people.

CCP602.1 8
Functional Distribution:

Distribution of income and wealth among four factors

of production.

Hence we can say functional distribution is a factor-

wise distribution ---

Rewards to land, labour, capital and organization.

The people who own the factors of production are

not considered

CCP602.1 9
Functional Distribution includes:

Personal Distribution can be explained as:

An individual may get income from one factor which

he owns.

Also, an individual may get income from more than

one source.

If he gets income from both land and capital he gets

rent as well as interest.

CCP602.1 10
Functional Distribution (Contd..)

Thus Personal Distribution is only a part of

Functional Distribution.

The study of personal distribution of income and

wealth reveals:

The elimination of inequalities of income and

wealth if any.

Distributive trends among various classes of

people and individuals.

CCP602.1 11
Summary:

We have discussed about:

 Meaning and definition of Distribution

 Types of distribution

 Meaning of Personal Distribution

 Meaning of Functional Distribution.

CCP602.1 12
Quiz

1. Distribution refers to:

a) Distribution of income of a community among the
people.
b) Distribution of wealth of a community
c) Distribution of both wealth and income of a
community among its people
d) None of the above

CCP602.1 13
2) Personal distribution is:

a) Distribution of wealth and income among different

factors of production.
b) Distribution of wealth and income among different
classes of people
c) Both A & B
d) None of the above

CCP602.1 14
3) Personal Distribution includes Functional
Distribution (Yes/No)

Ans.: Yes

CCP602.1 15
Frequently asked questions :

1) Explain the meaning of Distribution.

2) State the different types of Distribution.

3) What is meant by Personal Distribution.

4) What is meant by Functional Distribution.

CCP602.1 16
Thank you

CCP602.1 17