Asked by saurav basnet on Jun 13, 2024
Verified
Consumption + the change in net worth =
A) saving.
B) economic income.
C) total assets.
D) depreciation.
Economic Income
The total value of all income generated by the assets of an individual or organization, including both realized and unrealized gains.
Net Worth
The total value of an individual's or organization's assets minus their liabilities.
- Elucidate the notion of economic income and its calculation methodology.
Verified Answer
KD
Kelly DavisJun 16, 2024
Final Answer :
B
Explanation :
Economic income is defined as the sum of consumption and the change in net worth. This concept reflects the total value an individual has gained within a certain period, including both what they have spent and how their wealth has changed.
Learning Objectives
- Elucidate the notion of economic income and its calculation methodology.