ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money received by resource owners and producers is known as income. Resource owners use their money to buy more goods and services. Producers use their income to buy more resources. Those receiving larger incomes are able to buy more goods, services, and resources than those with lower incomes.

Detailed explanation-2: -Revenue is the money a company earns from the sale of its products and services.

Detailed explanation-3: -Households are sellers in the market for resources. Households sell land, labor, capital, and entrepreneurial activity in exchange for money, which in this case is called income.

Detailed explanation-4: -A reward a businessman receives after bearing the risk of the business is known as profit. It is the money left over after covering all the costs of the business.

Detailed explanation-5: -Capital goods are man-made, durable items used by businesses to produce goods and services. They include tools, buildings, vehicles, machinery, and equipment.