Question

Select all items that increase personal income.

wages
allowance
Earned Income Tax Credit
rent subsidy

Answer 1

The correct answers are the options A, B, C and D: wages, allowance, Earned Income Tax Credit and rent subsidy.

Step-by-step explanation:

To begin with, a wage is the remuneration that an employee receive from an employer for his work done under the employer's organization. The allowance is an amount of money given to somebody for a specific purpose, it could be for example the money given to a child from his parents with the purpose of learning how to manage the money. The United States federal earned income tax credit is a refundable tax credit whose policy is to redistribute the money to the families with the lower incomes. And finally the rent subsidy is an amount of money that the government gives to the people who does not have enough income to live properly, so that this subsidy helps them to pay the rent.

To sum up, all the items help to increase the personal income.

Answer 2

The correct answer is: "All the options provided increase personal income".

Wages are the retribution of providing a person's skills and effort to production of good and services or entrepeneurial activities.

Allowance is an amount of money that one person is voluntarily willing to give to another individual without asking for a refund or any other requirement in exchange for it.

The Earned Income Tax Credit is the amount transferred by the Income Tax authorities to individuals with lower incomes, as part of the redistributive mechanisms.

A rent subsidy is granted by a public entity to specific households with a very bad economic situation, to help them pay their home rents.