An income is measured as "an amount received in a specific period."
Income is the utilization and investment funds opportunity picked up by a substance inside a predetermined time allotment, or, in other words in money related terms. However, for family units and people, "wage is the whole of the considerable number of wages, pay rates, benefits, premium installments, rents, and different types of income got in a given time of time."
In the field of open financial aspects, the term may allude to the gathering of both fiscal and non-money related utilization capacity, with the previous (money related) being utilized as an intermediary for aggregate salary.
An income is measured as the sum of income of all factors of production.
Further explanation:
The national income is an aggregate that measures the income of an entire nation. A nation consists of various factors of production like land, labor, capital, and entrepreneur. The sum of incomes of all these factors of production depicts the overall income of the economy. In simple terms, income is measured as the sum of rent, wages and salaries, interest payments and royalties, and profits. In national income accounting, there are three systematic methods to measure income. They are expenditure method, income method, and value-added method. In computing the national income through income method as well, interest, royalties, compensation to employees and profits are included. An income is a flow concept and computed using the value of the items that prevailed during a time period.
Therefore, an income is measured as the sum of income of all factors of production.
Learn more:
1. Learn more about national income.
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2. Learn more about net income.
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3. Learn more about minimum wages.
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Answer details:
Grade: Senior school
Subject: Economics
Chapter: National income
Keywords: an income, is measure, as, sum of incomes, of all factors of production, national income accounting, aggregate that measures the income of an entire nation, national income aggregate, sum of rent wages salaries interest paymentsroyalties profits, income method.
