A household's income earned from the markets for factors of production and with no government redistribution is

Question

Quizplus · Accepted Answer

Market income is the income earned by a household through its participation in the economy, i.e. by selling their labor, land, or other factors of production in the market. This income is earned before any government redistribution, as in the form of taxes, welfare payments, etc. Hence, market income is the correct choice.

A Household's Income Earned from the Markets for Factors of Production