Capital income includes
A) profits,rent,and interest.
B) wages and salaries.
C) earnings of the self-employed.
D) capital gains from stock sales.
E) transfer payments.

Question

Quizplus · Accepted Answer

Capital income refers to income earned from ownership of assets such as profits from businesses, rent from property, and interest earned from savings or investments. Wages and salaries (B) are considered labor income, while earnings of the self-employed (C) refer to income earned from running one's own business. Capital gains from stock sales (D) are also a form of capital income, but not all capital income comes from stock sales. Transfer payments (E) refer to payments made by the government to individuals or households and are not a type of capital income.

Capital Income Includes