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:

Articles of Incorporation

A document filed with a governmental body to legally document the creation of a corporation, detailing its structure, purpose, and compliance with state laws.

Memorandum of Association

A legal document required for the formation of a company, outlining its constitution and permitted activities.

Non-Special Act Corporation

A corporation that operates under general corporate laws rather than being governed by laws enacted for a specific type of business or purpose.

Prospectus

A detailed document provided by a company to potential investors, outlining the company's financial health, operations, and investment risks.