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Income
The flow of money or rewards to the factors of production for their use in producing output. Factors of production are normally inputs used in production— land, labor, capital, entrepreneurial skill. For example, land (including valuable resources embedded in land) can generate rent periodically, labor generates wages/income, capital acquires interest, and the reward for innovation and risk taking is profit. Income can therefore be defined as a flow of rent, wages/income, interest, and profit. Income as a flow is distinguishable from a stock of asset, such as a bequest or gift. Wealth cumulatively constitutes the flow and stock of assets.
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