Comes in forms of wage or salary payments for labour when consumers participate in the labour market
Rent
Many consumers own land which becomes a source of income when rented
Interest
Returns from the ownership of capital
Consumers with greater wealth enjoy higher income levels since wealth creates ongoing income through returns from owning capital
Profits
When businesses make profit, the income is considered a return for their use of entrepreneurial skill
Social Welfare
Income is collected through taxation and then transferred from governments to consumers. Social welfare aims to provide a minimum income net, allowing consumers to purchase necessities in life.
