Theories Of Distribution
Telangana Open School (TOSS) · Class 12 · Economics
Flashcards for Theories Of Distribution — Telangana Open School (TOSS) Class 12 Economics. Quick Q&A cards covering key concepts, definitions, and formulas.
Interactive on Super Tutor
Studying Theories Of Distribution? Get the full interactive chapter.
Quizzes, flashcards, AI doubt-solver and a step-by-step study plan — built for flashcards and more.
1,000+ Class 12 students started this chapter today
What is functional distribution of income?
Answer
Functional distribution refers to how national income is divided among the factors of production based on their contribution. Rent goes to land, wages to labour, interest to capital, and profit to the…
What is personal distribution of income?
Answer
Personal distribution refers to how national income is distributed among individuals in society. It focuses on income inequality—why some people earn more than others. For instance, a doctor may earn …
Differentiate between micro-distribution and macro-distribution.
Answer
Micro-distribution explains how the prices of factors (like wages or rent) are determined in the market. Macro-distribution shows the share of each factor’s income in the total national income. For ex…
What is derived demand for factors of production?
Answer
Derived demand means the demand for a factor of production comes from the demand for the final product it helps to produce. For example, if there's high demand for cars, there will be higher demand fo…
What is marginal productivity theory of distribution?
Answer
This theory states that a factor of production is paid according to its marginal productivity—the additional output it generates. Developed by J.B. Clark, it says firms hire workers until the marginal…
Define marginal physical product (MPP).
Answer
Marginal Physical Product (MPP) is the extra output produced by adding one more unit of a factor, keeping others constant. For example, if 5 workers make 50 shirts and 6 workers make 58 shirts, the MP…
How is Marginal Revenue Product (MRP) calculated?
Answer
MRP = Marginal Physical Product (MPP) × Price of the product. For example, if a worker produces 10 extra bags (MPP=10) and each bag sells for ₹200, then MRP = 10 × 200 = ₹2000.
What are the key assumptions of marginal productivity theory?
Answer
1. Perfect competition in both product and factor markets. 2. Full employment of factors. 3. Homogeneous factor units. 4. Perfect mobility of factors. 5. Substitutability between factors. 6. Divisibil…
+20 more flashcards available
Practice AllFrequently Asked Questions
What are the important topics in Theories Of Distribution for Telangana Open School (TOSS) Class 12 Economics?
How to score full marks in Theories Of Distribution — Telangana Open School (TOSS) Class 12 Economics?
How many flashcards are available for Theories Of Distribution?
Sources & Official References
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
More resources for Theories Of Distribution
Practice Quiz
Test yourself with a quick quiz
Important Questions
Practice with board exam-style questions
Revision Notes
Key points for last-minute revision
Formula Sheet
All formulas in one place
Chapter Summary
Understand the chapter at a glance
Concept Maps
See how topics connect visually
Study Plan
Step-by-step plan to ace this chapter
Syllabus
What topics to cover
NCERT Solutions
Every textbook question solved step by step
For serious students
Get the full Theories Of Distribution chapter — for free.
Quizzes, flashcards, AI doubt-solver and a step-by-step study plan for Telangana Open School (TOSS) Class 12 Economics.