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definitions of income, Hoàng Minh Quân, Vũ Minh Anh, Khuất Duy Anh Tú,…
definitions of income
Nominal Income
Definition: Income measured at current market prices without adjustment for inflation or changes in purchasing power.
Example: A salary of $50,000 in the current year, reflecting raw earnings but not accounting for rising costs of goods.
Real Income
Definition: Income adjusted to constant prices to account for inflation, showing actual purchasing power over time.
Example: A nominal salary of $50,000 today equivalent to $45,000 in base-year dollars after adjusting for a 10% inflation rate.
Personal Income
Definition: Income earned by a single individual, focusing only on one person's sources of earnings.
Example: An individual's annual wage from their job, such as $40,000 from employment, excluding any spouse's or roommate's income.
Family Income
Definition: The combined earnings of all members within a family unit, typically related by blood or marriage.
Example: A married couple's total earnings where one earns $60,000 and the other $30,000, resulting in a family income of $90,000.
Household Income
Definition: The total earnings of all individuals sharing a household, including unrelated people like roommates.
Example: Three unrelated roommates earning $30,000, $25,000, and $20,000 respectively, leading to a household income of $75,000.
Narrow Income
Definition: A limited measure of income that includes only specific sources, such as labor income from wages or salaries.
Example: Only the wages from a full-time job ($45,000), excluding investment returns or dividends.
Broad Income
Definition: An expansive measure that includes wages plus other sources like dividends, retained earnings, or capital gains.
Example: A person's salary of $50,000 plus $10,000 in stock dividends and $5,000 from asset sales, totaling $65,000.
Gross Income
Definition: Total income before any deductions, such as taxes or other withholdings (pretax income).
Example: An annual salary of $60,000 before subtracting federal taxes or retirement contributions.
Net Income
Definition: Income after deductions like taxes, reflecting what is actually available for spending (post-tax income).
Example: A gross income of $60,000 reduced by $15,000 in taxes, resulting in $45,000 net income.
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Market Income
Definition: Income from market sources, including labor earnings, investments, and capital gains or losses from asset revaluations.
Example: Salary of $50,000 plus $20,000 profit from selling stocks (capital gains), totaling $70,000.
Disposable Income
Definition: Net income after taxes, including government transfers and benefits, representing spendable resources.
Example: Post-tax income of $45,000 plus $5,000 in government assistance (e.g., Earned Income Tax Credit or SNAP benefits), resulting in $50,000 available for use.
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