Income Concept

The term income designates a remuneration or group of remunerations of any economic agent in counterpart for the cession of a productive factor detained by itself for use in the productive process. Are examples of incomes, the following:

. Salary (or wage) – remuneration received for the cession of the work productive factor;

. Interest – remuneration received for the cession of financial means;

. Distributed profits (designated by dividends) – remuneration received for the cession of productive capital;

. Rents – remuneration received for the cession of facilities.

To the group of all incomes, obtained by all economic agents of a country, is given the designation of national income.

 

 

Translated from Portuguese by Susana Saraiva, Portuguese-English and English-Portuguese translation specialist. Contact: spams@sapo.pt.