Subpart (a):
Identify the sources of income.
Subpart (a):
Explanation of Solution
Concept Introduction:
Transfer payments: Transfer payments are payments made by the government to the people who do not contribute anything in the production process.
Unemployment compensation: Unemployment compensation is a transfer payment of government that pays cash benefits for a certain period of time to laid-off workers who have worked for a specified period of time.
Subpart (b):
Identify the sources of income.
Subpart (b):
Explanation of Solution
Dividend from share of stock can be treated as the income earned form property.
Concept Introduction:
Property income: Property income is the income earned from the financial holdings and the real property.
Subpart (c):
Identify the sources of income.
Subpart (c):
Explanation of Solution
Earing income in the form rent can be treated as the income earned form property.
Concept Introduction:
Property income: Property income is the income earned from the financial holdings and the real property.
Subpart (d):
Identify the sources of income.
Subpart (d):
Explanation of Solution
Earing income in the form health insurance can be treated as the income earned form wages and salaries in the form of wage supplements.
Concept Introduction:
Income from wages and salaries: Income earned from wages and salaries are the portion of personal income.
Subpart (e):
Identify the sources of income.
Subpart (e):
Explanation of Solution
Earing income as an administrative assistant can be treated as the income earned form wages and salaries in the form of wage supplements.
Concept Introduction:
Income from wages and salaries: Income earned from wages and salaries are the portion of personal income.
Subpart (f):
Identify the sources of income.
Subpart (f):
Explanation of Solution
Disability payments received from the social security administration can be considered as the transfer payments.
Concept Introduction:
Transfer payments: Transfer payments are payments made by the government to the people who do not contribute anything in the production process.
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Chapter 18 Solutions
ECO 2301 PRIN MICROECO W/MYECONLAB >I
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