Asked by Rachael Petersen on Jul 12, 2024
Verified
The difference between income and wealth is that income
A) is accumulated, while wealth is earned.
B) refers to a flow of earnings, while wealth is the stock of assets one has.
C) is measured at a point in time, while wealth is measured over a period of time.
D) may not be in cash, while wealth is in cash.
Flow of Earnings
Refers to the movement of profits or income generated by a business or investment over time.
Stock of Assets
Represents the total value of financial and physical assets owned by an individual, company, or country.
Wealth
The accumulation of valuable resources and assets, both tangible and intangible, that provide economic power or security to an individual or entity.
- Highlight the differences between financial income and assets, along with their significance in the study of economics.
Verified Answer
AP
Afriyie PhilipJul 19, 2024
Final Answer :
B
Explanation :
Income refers to the flow of earnings or money that a person receives over a period of time, typically from work or investments. Wealth, on the other hand, is the stock of all assets that a person owns at a given point in time, including cash, investments, properties, and other valuables.
Learning Objectives
- Highlight the differences between financial income and assets, along with their significance in the study of economics.