Income is the share of money from value-added costs that labor, capital, natural resources, and entrepreneurs—which are all factors joining in the production process—have. Within the production process, labor’s share is called the wage, capital’s share is called the interest, the natural resources’ share is called the rent, and the entrepreneur’s share is called the profit. These shares falling to the production factors are the incomes of the factor owners. The product at the end of the production is gross. The product turns into income after it is associated with a person. Income has some financial features: it is acquired by people, the production factors are acquired as a result of their entry into the production process, there is a monetary increase, and it can ...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles