Wages and Salaries Are Examples of

question 11

Multiple Choice

Wages and salaries are examples of

• A) consumption.
• B) labour income.
• C) capital income.
• D) profits.
• E) royalties.

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Definitions:

Output Per Worker

The average production or output produced per unit of labor, often used as a measure of labor productivity.

GDP Devoted To Investment

The portion of the Gross Domestic Product that is spent on investments in capital goods, infrastructure, and other activities to promote economic growth.

Poor Countries

Nations with low levels of economic activity, low per capita income, and generally low standards of living.

Catch-Up Effect

The property whereby countries that start off poor tend to grow more rapidly than countries that start off rich