they spend this income buying goods and services, money flows through
goods markets to generate income for producers.
The prices that are determined in these markets determine the incomes
that are earned. People who get high prices for their factor services earn
high incomes; those who get low prices earn low incomes. The
distribution of income refers to how the nation’s total income is distributed
among its citizens. This is largely determined by the price that each type
of factor service receives in factor markets.