Income and Wealth Are Related by the Following Identity

question 41

Multiple Choice

Income and wealth are related by the following identity:

• A) income + consumption = change in wealth.
• B) income - consumption = change in wealth.
• C) wealth + consumption = change in income.
• D) wealth - consumption = change in income.
• E) wealth - income = change in consumption.

---

Definitions:

Unemployment Compensation

Financial payments made to individuals who have lost their jobs through no fault of their own, intended to provide temporary financial assistance.

Internal Controls

Processes and procedures implemented by a business to safeguard assets, enhance accuracy of financial records, and increase efficiency.

Payroll

Payroll refers to the process by which employers pay an employee for the work they have completed during a certain period of time.

Social Security

A government system that provides monetary assistance to people with an inadequate or no income.