Which of the following is an example of labor income?
A) The dividend received by a shareholder
B) The rent paid to a landlord
C) The bonus paid to a worker
D) The profit earned by an entrepreneur

Question

Quizplus · Accepted Answer

Labor income refers to income earned from work or employment. Therefore, the bonus paid to a worker (choice C) is an example of labor income. The other options are not examples of labor income - the dividend received by a shareholder (choice A) is income earned from ownership of shares, the rent paid to a landlord (choice B) is income earned from property ownership, and the profit earned by an entrepreneur (choice D) is income earned from running a business, which may involve a combination of labor income and capital income.

Which of the Following Is an Example of Labor Income