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:

Specific Performance

A legal remedy in contract law which mandates the exact performance of an agreement, rather than a monetary award for breach.

Rescission

The act of revoking, cancelling, or annulling a contract, returning all parties to their pre-contractual states.

Restrictive Covenant

A clause in a deed or lease that limits what the owner of the land or property can do with it.

Breach of Contract

Occurs when one party in a contractual agreement fails to fulfill their obligations as specified in the contract, entitling the other party to legal remedies.