Types of income

1. Which of the following is NOT classified as investment income?

• 1. Dividend income

• 1. Wages

• 1. Interest income

• 1. Capital gains

1. Which of the following forms of investment income is typically considered passive income?

• 1. Rental income from real estate

• 1. Profits from a business partnership

• 1. Salary from a part-time job

1. What is proprietor compensation generally considered?

• 1. An expense of the business

• 1. Personal income for the owner

• A fixed asset

• 1. A liability

Which of the following best describes "dividend income"?

• Income received from selling goods

• Income derived from rental properties

• Payments made to shareholders from a corporation's profits

• Sales commissions received from business transactions

White-collar workers are ...

• people who do jobs in factories or outdoors

• people who work on their own farms

• people who do jobs in offices, such as secretaries and teachers

• people who provide services to other individuals or businesses (janitors, barbers, and police)

The income corporations have left after paying all the

expenses

• Interest

• Corporation profit

• Rent

• Proprietor compensation

What is the multiplier effect of spending?

• Spending becomes income for someone else

• People with similar incomes may have very different amounts of wealth

• Individual’s debts are subtracted from

  personal wealth

A profit from an investment

• Surplus

• Return

• Excess

• Revenue

If the price is too high, a … will develop and move the item’s price down.

• liability

• profit

• revenue

• surplus

Growth also keeps people employed and earning ….

• income

• profit

• return

• proprietor compensation