LABOUR INCOME Labour income is the amount that employed people earn by working. Labour income comes in the form of wages and salaries. CAPITAL INCOME Capital income is the amount that owners of assets earn via their assets. Assets include land, machines, buildings, patents, stocks, bonds and other types of investible assets. Self-employed workers earn from both their work and capital ownership. What are some … Continue reading Labour income vs capital income
If you would like to understand the meaning of inflation and what causes it, click here before you continue reading this post. Now that you know what inflation is, we are going to discuss it in depth. Inflation is the rate of change of prices of goods and services. Inflation is usually expressed in terms of the Consumer Price Index (CPI)* as shown in the … Continue reading Is Inflation Good or Bad?
To put it simply, interest is the cost of borrowing money. Let’s just say I want to spend $1 on a cone of ice-cream right this moment. But then, a friend of mine asked to borrow $1 from me. I only have that $1 coin and nothing else. Shall I decide to lend my coin to my friend or use it to buy my ice-cream … Continue reading What Is Interest?