what does it mean factor pricing and income distribution in economics?
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Factor pricing and income distribution are interrelated. The price of a factor (say wage) together with the quantity of the factor (demanded and supplied) will determine the reward to the factor.
For example, if the daily wage of an average worker is Rs. 20 and if 100 workers are employed by all firms in an economy, the total wage payment will be Rs. 20 x 100 = Rs. 2,000. This is the share of labour in national income. This indicates what (and how much, of different commodities and services) workers as a group can buy.
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