What are the two categories of income payments and what fraction of total income payments do they each make up?
A) Labor income, two-thirds and capital income, one-third
B) Skilled-labor income, three-fourths and unskilled-labor income, one-fourth
C) Labor income, one-third and capital income, two-thirds
D) Skilled-labor income, one-half and unskilled-labor income, one-half

Question

Quizplus · Accepted Answer

Labor income typically constitutes about two-thirds of total income payments, reflecting wages and salaries earned by workers, while capital income, which includes profits, rents, and interest, makes up the remaining one-third. This division underscores the primary sources of income in most economies, where labor is the predominant factor of production, alongside capital.

What Are the Two Categories of Income Payments and What