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What is unearned income?
Unearned Income deals with many necessary things for which Unearned Income Homework Help is needed. However, unearned income is that part of economics which deals with the income of individuals which is not their hard earned money.
It encompasses all such income which is not earned by the individual directly, such as remittances received from abroad, Properties inherited from their forefathers, pensions and other such income that is received by an individual provided by the state due to them falling into the category of backward classes where the state’s duty is to take care of them financially to a certain extent.
Main types of unearned money
Different types of unearned money are there of which students have to stay aware and Unearned Income Homework Help is essential to fulfill that thing. Unearned money can be of many types considering the source. The three major sources of such income are as follows:
- If you are receiving rent from a property that is not bought by you or that is a natural resource of any kind, it is unearned money.
- If you lend someone money and charge a particular rate of interest,then the interest received is unearned money.
- If you sell a property for a price greater than which you bought it in, it is unearned money.
Views of economists about unearned income
Economists have different ideas about which kind of income falls into the category of Unearned Income. The ideas below bring out how that is:
According to the Classical economists, all such income that is not earned by direct labor is termed as Unearned Income.
According to Neo-classical economists, all such income that is not rendered productive by you in the past, present or anytime at all can be termed as Unearned Income.
Classical Political Economists:
Classical Political Economists held land as a source of earned income since there was no way that land could be ‘produced’ by men. Therefore, land, whether hereditary or bought, was considered as a part of earned income by them.
According to Marxian Economists, the extra money that a person has beyond the income that is needed for existence is termed as Unearned Income.
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