2.4.1 Flashcards
1
Q
What is income?
A
The flow of money going to factors of production
2
Q
Where can income come from?
A
-Wages from salaries/jobs
-Rental income from property
-Interest from savings
-Profits flowing to shareholders
3
Q
Original income?
A
Income from jobs, private pensions and interest from savings.
4
Q
Gross income?
A
original income + cash benefits
5
Q
Disposable income?
A
Gross income minus direct taxes
6
Q
Post-tax income?
A
Disposable income minus indirect taxes
7
Q
Real income?
A
Adjusted to inflation. Measures the true purchasing power of income
8
Q
What is wealth?
A
The value of a stock of assets owned by someone or society as a whole.
9
Q
What are sources of wealth?
A
-Savings in bank accounts
-Ownership of property
-Shares/stocks of businesses
-Wealth held in occupational pension scehmes
