Caleb teaches economics at Yucky State University and is paid $50, 000 per year.He also provides economic forecasts for local business for which he charges $100 per hour.Which of the following is true?

Question

Quizplus · Accepted Answer

Caleb has two sources of income: his salary from teaching economics at Yucky State University and his income from providing economic forecasts for local businesses. The salary is considered earned income while the income from providing economic forecasts is considered proprietor's income. Therefore, some of Caleb's income is salary and some is proprietor's income.

Caleb Teaches Economics at Yucky State University and Is Paid