Which type of income is composed of both the labour income and capital income of those person who provide both labour and capital services One word
Which type of income is composed of both the labour income and capital income of those person who provide both labour and capital services
One word
The amount earned by employed people by working is referred to as labour income. To separate it from capital income, economists employ this notion. As a result of their property, asset owners gain capital income. Land, machinery, buildings, and patents are all examples of valuable assets. Employee pay as well as a portion of self-employed income are included in labour income. Workers who are self-employed profit from both their labour and their investments.
Capital income is revenue derived from capital, that is, income derived from wealth rather than specialised production or direct labour. Stock dividends or any other type of capital gain, as well as income from a firm that an owner owns but does not work in, are examples. The term can also refer to any revenue spent for capital expenditures, albeit this is a less typical usage.
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