Final answer:
The concept that refers to earnings from work and any investments is income. It can be earned via labor or from investments in real estate, stocks, bonds, and other financial assets. The amount of income depends on the value and quantity of the resources one owns and the value society places on those resources. The correct option is c.
Step-by-step explanation:
The concept that refers to earnings from work and any investments is income. In a market economy, such as the United States, income is derived from the ownership of resources or assets, which are used in production. The most commonly owned resource is labor, which equates to most people earning their income through wages, salaries, commissions, tips, and other forms of labor income.
However, income can also come from owning real estate and financial assets like bank accounts, stocks, and bonds, from which individuals can earn rent, interest, and dividends respectively.
Not only is income generated from these sources, but it also depends on factors such as the number of hours worked and the wage rate, as well as the societal value placed on the resources owned. Furthermore, physical capital, such as machinery or real estate, can also generate a stream of income when owned by individuals, contributing to their overall wealth.
Physical capital can either be used directly in production, resulting in profits for business owners, or provide returns on investment through dividends and interest rates for those who have invested in or lent to a company.
Hence, Option c is correct.