Aggregate income is defined as
A)the sum of income earned by all laborers in the world economy
B)the sum of income earned by all workers in the private sector
C)the total income of all individuals who contribute resources to the market production of output
D)total income after all income taxes but before paying other payroll taxes
E)total income after purchases of necessities

Question

Quizplus · Accepted Answer

Aggregate income refers to the total income earned by all factors of production (labor, capital, and land) that are involved in the production of goods and services in an economy. This includes all individuals who contribute resources to the market production of output, such as workers, entrepreneurs, investors, and landlords. It is not limited to just laborers or workers in the private sector. It also includes income earned before taxes and payroll deductions, as well as income from investments and other sources. Therefore, choice C is the best option.

Aggregate Income Is Defined as