Distribution of output
Also called: Distribution of goods and services · Topic: Scarcity, Choice and Economic Systems · NCERT: Class 12, Ch 1 "Introduction (Microeconomics)"
Meaning
Distribution of output is about how the final goods and services an economy produces are shared among its people. It decides who gets more and who gets less. Together with the allocation of scarce resources, it is one of the central problems every economy faces. It is the "for whom to produce" question.
Example
In a market, output mostly goes to people who can pay for it. The state can change this share. Under the National Food Security Act (NFSA) 2013, the state gives households a guaranteed minimum amount of food even if they cannot afford to buy it at market prices.
Don't confuse with
- Distribution of national income: This is how income is shared among the factors of production as wages and salaries, profit, rent and interest. Distribution of output is about who gets the goods and services themselves.