Income Definition In Economics

A statement of the revenues expenditures and profit for a business household or government entity over a given period of time.

Income definition in economics. Income effect is a change in income that affects the amount of goods or services individuals will demand or purchase. This general definition of income represents the amount the company could consume during the period and still have. Income is money or some equivalent value that an individual or business receives usually in exchange for providing a good or service or through investing capital. An economic point of view income is defined as the change in the company s wealth during a period of time from all sources other than the injection or withdrawal of investment funds.

For households and individuals income is the sum of all the wages salaries profits interest payments rents and other forms of earnings received in a given period of time. To calculate taxable income which. An income statement also goes by the names profit and loss statement earnings report and operating statement. Economic income is a term that is used to describe the amount of income that an entity can comfortably spend during a specified period of time.

Term income statement definition. This is one of two key financial statements for an entity. Gross income refers to an individual s total earnings or pre tax earnings and ni refers to the difference after factoring deductions and taxes into gross income. Income as it is generally understood in economics is theoretically defined as the maximum amount that a household or other unit can consume without reducing its real net worth.

When the concept of economic income is applied to the household budget the term usually refers to the amount of income that remains after all essentials have been purchased for the period. The key is that income for the aggregate economy is generated in the production of goods and services. Income is used to fund. For the aggregate economy earned income is termed national income while received income is termed personal income.

Economics the amount of monetary or other returns either earned or unearned accruing over a given period of time 2.