Briefly explain the three distinct components of economics.

Three distinct components of economics are consumption, production and distribution.

(i) Consumption : Using of goods for satisfying human needs is called consumption.

(ii) Production : Adding or increasing the utility of a commodity is known as production.

(iii) Distribution : It means the distribution of the national income or the total income arising from what has been produced in the country (called GDP). GDP is distributed among the agents (factors) of production in the form of wages/salaries, profits, interests and rents.