Question

A person's labor income is equal to the __________ times __________. the return on savings that a person receives is referred to as __________.

Answer 1

A person's labor income:
WAGE RATE A PERSON EARNS times NUMBER OF HOURS A PERSON WORKS.

For example: $8 per hour ; 8 hours per day
labor income per day = 8 per hour * 8 hours per day = $64 per day.

ASSET INCOME is the return on savings that a person receives. Savings is an asset. The earnings generated from these savings are identified as asset income.