ch 3-3 - What, How, and For Whom? For Whom? Large income...

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What, How, and For Whom? For Whom? Large income enables a person to by large quantities of high quality goods and services. Low income leaves a person with few options and small quantities of goods and services. Sources of Income : People earn income by selling the services of the factors of production they own. Land earns rent . Labor earns wages . Capital earns interest . Entrepreneurship earns profit .
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Unequal Distribution of Income Wages and fringe benefits account for 70% of total income in the U.S. Income is not equal among individuals: Tim Tebow received a multi-million dollar contract to play football for the Broncos; servers at McDonald’s average around $6.35 per hour. Bill Gates has accumulated a net worth in excess of $30 billion from operations of Microsoft; my cousin Jim has accumulated a net worth of about $250,000 as a hog farmer. Question:
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This note was uploaded on 02/10/2011 for the course AEB 3103 taught by Professor Cazanova during the Fall '08 term at University of Florida.

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ch 3-3 - What, How, and For Whom? For Whom? Large income...

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