Asked by Aidan Packer on May 21, 2024
Verified
The largest single share of all income earned by Americans consists of:
A) wages and salaries.
B) interest.
C) rents.
D) corporate profits.
Wages and Salaries
Payments made to employees for their labor or services, typically on an hourly, daily, or yearly basis.
- Learn about the characteristics of labor's share of national income and its stability over time.
Verified Answer
EC
Eliana CabreraMay 25, 2024
Final Answer :
A
Explanation :
According to data from the Bureau of Economic Analysis, the largest single share of all income earned by Americans is from wages and salaries. In 2019, it was 48.5% of total personal income, followed by interest (9.3%), dividends (8.6%), and rental income (4.4%). Corporate profits accounted for only 6.8% of total personal income. Therefore, choice A is the best answer.
Learning Objectives
- Learn about the characteristics of labor's share of national income and its stability over time.