What is defined as money earned through work, such as wages or salary?

Study for the IGCSE Economics Test. Dive into multiple choice questions and informative flashcards, each with hints and clear explanations. Boost your exam readiness!

The definition of money earned through work, such as wages or salary, is referred to as earned income. This term specifically encompasses the earnings individuals receive in exchange for their labor or services provided. It stands out from other forms of income, highlighting that this amount is a direct result of work effort rather than passive sources such as interests or dividends.

Unearned income refers to earnings derived from investments, royalties, or other non-labor sources, while government income is not a standard economic term that describes income earned by individuals through employment. Investment income is specifically related to earnings gained from financial investments, rather than earnings from employment. Therefore, earned income effectively captures the essence of money received as a result of work, making it the correct answer.

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