Most of the total income earned in the U.S. economy is ultimately paid to
A)landowners in the form of rent.
B)owners of capital in the form of interest.
C)households in the form of wages and fringe benefits.
D)households in the form of welfare, disability, and Social Security payments.

Question

Quizplus · Accepted Answer

According to the Bureau of Economic Analysis, in 2019, labor income (wages and benefits) accounted for more than 66% of national income in the United States. This suggests that the majority of income earned in the U.S. economy is ultimately paid to households in the form of wages and fringe benefits. While income is also paid to landowners in the form of rent and to owners of capital in the form of interest, these sources of income make up a smaller share of total income compared to labor income. Welfare, disability, and Social Security payments are a form of transfer payment, not income earned in the economy.

Most of the Total Income Earned in the U