Question

Which of the following is an example of earned income?

a. A paycheck you receive for work you have done
b. Interest on money you lent to a friend
c. A gift of money from a friend or family member
d. Money you receive from a company you invested in

Answer 1

The correct example of earned income is a paycheck for work done. This contrasts with passive forms of income such as interest, gifts, or investment returns, which are not from labor.

Step-by-step explanation:

The question concerns earned income, which refers to monetary compensation received for work performed, typically in the form of wages, salaries, commissions, tips, or bonuses. The correct choice that illustrates an example of earned income is:

1. A paycheck you receive for work you have done

This selection represents income that resulted directly from the labor provided by an individual. This type of income is distinguished from passive income, such as option b (interest), option c (gifts), and option d (investment returns), which are not the results of traditional employment work.

Answer 2

Earned income is the income you earn: that is that you get as a result of your work. This is most typically a salary, but it could also be from tips and similar sources. the correct answer is

a. A paycheck you receive for work you have done