Economic income refers to the amount of money a household can spend during a given time period without increasing or decreasing its net worth. It takes into account both earned income (wages, salaries, etc.) and unearned income (interest, dividends, government transfers, etc.) and deducts expenses such as taxes and depreciation. It is also known as disposable income or after-tax income.

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Economic Income Is

Question 30

Multiple Choice

Economic income is

A) the amount of money a household can spend during a given time period without increasing or decreasing its net worth.
B) income from the ownership of real property and financial holdings.
C) differences in wages that result from differences in working conditions.
D) payments by government to people who do not currently supply goods or services in exchange.

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