Under the head of consumption was treated the using or the utilization of economic goods. Under production was treated the bringing into being of economic goods, or the creation of utilities in economic goods. Under exchange, as we have just seen, the central theme was the valuation of economic goods, and now under distribution, the fourth of these large divisions into which for convenience of treatment we have divided the field of economics, we shall discuss the sharing of economic goods or the division of economic goods among those who have helped to produce them.

The term distribution is sometimes used also to indicate the transportation of goods to the localities where they are to be used. In this book the term distribution is not used in this sense. The transportation of goods, economically considered, falls under the head of production and not under that of distribution.

162. The Shares In Distribution

We have already taken account of the four factors in production, namely, land, labor, capital, and business enterprise. Those who possess or control these factors are in a position which permits them to make a claim and to enforce the claim for a share of the goods which are produced. The share which the landlord receives by virtue of his ownership of the land is rent. The share which the laborer receives because of the contribution of his labor is wages. The share which the capitalist receives because of his control of capital is interest. And the share which goes to the employer or enterpriser because he has undertaken the enterprise is profit.