The money income of households consists of the sum of:
A) wages plus salaries plus benefits.
B) consumption expenditures plus profits.
C) wages plus rents plus interest plus profits.
D) consumption expenditures plus costs of resources.

Question

Quizplus · Accepted Answer

According to the classical theory of income, the money income of households is the sum of wages, rents, interest, and profits. Therefore, option C accurately describes the components of household income. Option A only includes wages, salaries, and benefits, leaving out rents and interest. Option B includes profits, which is not a part of household income. Option D includes costs of resources, which is not a component of household income.

The Money Income of Households Consists of the Sum Of