Final answer:
Income from savings comes in three forms: A. Interest, Dividends, and Capital Gains, as these are related to financial assets, ownership of companies, and the sale of assets for profit.
Step-by-step explanation:
The three basic forms of income from savings, also known as capital income or investment income, are A. Interest, Dividends, and Capital Gains. This is because in a market economy such as the United States:
- Interest is earned from financial assets such as savings accounts and bonds.
- Dividends are distributed to shareholders from the profits of a company in which they hold equity.
- Capital Gains are realized when selling an asset like stocks or real estate for more than the purchase price.
These forms of income are derived from the ownership of resources or assets and their value within society. Labor income, on the other hand, comes in the form of wages, salaries, and other compensation for the work performed.