Final answer:
An example of earning income from capital gains is when an individual sells an investment at a higher price than what they paid for it.
Step-by-step explanation:
An example of earning income from capital gains is when an individual sells a stock at a higher price than what they originally paid for it. For instance, if you buy a share of stock for $10 and sell it later for $20, the $10 difference is considered a capital gain. This can also apply to other investments, such as real estate or artwork, where the value increases over time.
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