252 АНГЛИЙСКИЙЯЗЫК:ЭКОНОМИКАИФИНАНСЫ

Английский язык: экономика и финансы. Ч.1. Введение в специальность

THRESHOLD

4.3.BACKGROUNDINFORMATION
Incomeandemployment
People'sincomesdeterminehowmanyoftheeconomy'sgoodsandservices
theycanpurchase.Incomeisthemoneyapersonreceivesinexchangeforwork
orproperty.Therearefivebasictypesofincome:
Employeecompensationistheincomeearnedbyworkingforothers.It
includeswagesandfringebenefitssuchashealthandaccidentinsurance.
Proprietorcompensationistheincomethatself-employedpeopleearn.
Corporationprofitistheincomecorporationshaveleftafterpayingallthe
expenses.
Interestisthemoneyreceivedbypeopleandcorporationsfordepositing
theirmoneyinsavingsaccountorlendingittoothers.
Rentistheincomefromallowingotherstouseone'spropertytemporarily.
Thetotalincomeisthesumofemployeeandproprietorcompensation,
corporationprofit,interestandrent.Ineachcategory,peoplereceivethisincome
inreturnforprovidinggoodsorservices.
Oneothertypeofincomeisatransferpayment—moneyonepersonor
groupgivestoanother,thoughthereceiverhasnotprovidedaspecificgoodor
service.Gifts,inheritances,andaidtothepoorarethreeexamplesoftransfer
payments.
Duringthepastcentury,thepercentageofpeoplewhoworkforthemselves
hasgenerallydeclined.Increasingly,peopleareemployeesandnotself-
employed.
Bythetypeofworkpeopledoworkersfallintooneoffourbroadcategories:
1.White-collarworkersarepeoplewhodojobsinoffices,suchassecretaries,
teachers,andinsuranceagents.
2.Blue-collarworkersarepeoplewhodojobsinfactoriesoroutdoors.
Artisans,suchascarpentersandplumbers,areblue-collarworkers.
3.Serviceworkersprovideservicestootherindividualsorbusinesses.
Janitors,barbers,andpoliceareserviceworkers.
4.Farmworkersarepeoplewhoworkontheirownfarmsorthoseofothers.
Inthemarketsystemaperson'sincomeisdeterminedbyhowthemarket
valuesthatperson'sresourcesandskills.Individuals,suchasdoctors,whose
skillssocietyvalues,receivehighincomes.Peoplewhoownvaluableresources,
suchascapitaltoinvestorlandtodevelop,alsoreceivehighincomes.
Incomeisnotthesameaswealth.Wealthisanyresourcethatcanbe
usedtoproduceincome.Anindividual'spossessions,suchasahouse,acar,
orjewellery,arepartofthatperson'swealth.Eachofthesecouldbesoldto
produceincome.Savingsaccountsandcorporationstocksaretypesofwealth

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