Generally,which of the Following Does Not Correctly Categorize the Type

question 8

Multiple Choice

Generally,which of the following does not correctly categorize the type of income?

• A) rental real estate − passive income/loss
• B) salary − active income/loss
• C) dividends − portfolio income/loss
• D) capital losses − passive income/loss
• E) All of the choices are correct.

---

Definitions:

Normative Economic Statements

Assertions about economic outcomes or policies that incorporate judgments about what is desirable or undesirable, reflecting values and norms rather than hard facts.

Standard of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.

Equal Distribution

The equitable allocation of resources, income, or assets among all members of a society or group.

Income

The total money received by an individual or household over a specified time period, including wages, salaries, benefits, and other earnings.