- An income is created when a worker is remunerated out of the firm's earnings; this can only take place logically after the firm has sold its product to consumers and therefore disposes over the necessary funds.
- An income is created when the firm pays the worker for his labour, which takes place logically before the product is sold to consumers.
Test the soundness of your economic knowledge. By applying the socratic method, we will question your assumptions and the logic of your reasoning, which will hopefully lead to a better understanding of our economic reality.
25.10.10
Great. So then, which of the following sentences corresponds to your view of income creation?