What Is the Difference Between Nominal Income and Real Income

question 128

Multiple Choice

What is the difference between nominal income and real income?

• A)Nominal income is income earned before taxes,real income is income after taxes.
• B)Nominal income is income earned from all factor services,real income is income earned from employment only.
• C)Nominal income is the amount of income measured in base-year prices,real income is income measured in current prices.
• D)Nominal income is present dollar-value of income,real income is the purchasing power of income.

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Definitions:

MP

This term can refer to multiple concepts; as "Member of Parliament", it denotes a representative elected to the legislative body of a country. In a military context, it stands for "Military Police", a branch of the service concerned with enforcing discipline and the law within the armed forces.

Simp

A slang term often used to describe someone who demonstrates excessive sympathy or attention towards someone else, typically someone they are romantically interested in, in a way that is seen as undignified or without reciprocation.

Conj

Short for "conjunction," a part of speech that connects words, phrases, or clauses in a sentence.

Add

To add means to combine or join something with another, resulting in an increase in quantity, number, or significance.