ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is income? Income is money that an individual or business receives in exchange for providing labor, producing a good or service or investing capital. Individuals typically earn income through wages or salary, while businesses earn income from selling goods or services above their cost of production.

Detailed explanation-2: -1. What is the difference between income and earnings? Earnings refers to money earned from employment, whereas income is total money received, including from earnings, benefits and pensions, and so on.

Detailed explanation-3: -The term “income” generally refers to the amount of money, property, and other transfers of value received over a set period of time in exchange for services or products. There is no single, standard definition: income is defined according to the context in which the concept is used.

Detailed explanation-4: -Income is often considered a synonym for revenue since both terms refer to positive cash flow; however, in a financial context, the term income almost always refers to the bottom line or net income since it represents the total amount of earnings remaining after accounting for all expenses and additional income.

Detailed explanation-5: -Gross income is everything an individual earns during the year both as a worker and as an investor. Earned income only includes wages, commissions, bonuses, and business income, minus expenses, if the person is self-employed.