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There are two ways to earn income: from work and from the use of wealth. 1_______________________________. Adding the value of all your possessions, bank accounts, savings, and the like will give you the total amount of your wealth.
Used in certain ways, wealth can earn income. 2________________________________. In that instance economists would say that you used your wealth to earn “rent”. 3_______________________________. As you can see, interest and rent are two forms of income that can be earned by wealth.
4_______________________________.
Wealth can be expressed as the value of the things you own.
If you owned a house, you might be able to let others use it for a fee.
Wealth, in the form of money that is loaned to others or deposited in a savings account, will earn interest.
Other types of income are dividends and capital gains that can be generated from the wealth.