ABSTRACT
Chapter 8 offered extensive insights into the pricing of resources. The subject of income distribution is only a short step away from the theoretical exposition of how markets determine the payments of wages, interest, and rent. Left to themselves, these market-generated payments are the principal driver in deciding the relative shares of national income earned by labor, capital, and land. Separately, these factor payments also strongly influence the distribution of personal income received by various types of economic units in the form of individuals, families and households.
