Final answer:
Income is picked up within the operating cycle when it is generated and received by households. Personal income refers to the portion of GDP that goes directly into the hands of households. A regular paycheck is an example of income within the operating cycle.
Step-by-step explanation:
Income is picked up within the operating cycle when it is generated and received by households. In the context of the national accounts, personal income refers to the portion of GDP that goes directly into the hands of households. This income is earned through various sources such as wages, salaries, rental income, and investment income.
For example, when a person receives a paycheck regularly, it is a form of income that occurs within the operating cycle. The period of this event is typically every month or every two weeks, depending on the individual's payment schedule.
It is important to note that income within the operating cycle may vary for different individuals and businesses, as it depends on the nature of their economic activities and payment arrangements.