Understanding Income Definition and Concepts

Consumption + Change in net worth (correct)

Net income equals revenue minus expenses

Gross income minus taxes

Sum of all revenue minus cost of goods sold

In terms of consumption and saving opportunities (correct)

As a proxy for total expenses

As a measure of net worth

As a sum of all revenue

Accumulation of both monetary and non-monetary consumption ability

Sum that includes wage, salary, profit, interest payment, rent, or other form of earnings received in a calendar year (correct)

Gross income minus taxes and other deductions

Sum of all revenue minus the cost of goods sold

<p>Gross income minus taxes and other deductions (D)</p> Signup and view all the answers

<p>Sum of all revenue minus the cost of goods sold (A)</p> Signup and view all the answers