Income

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/income

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the haig-simons income formula?Consumption + Change in Net Worth
2. What is the US legal income components?Wages, salary, profit, interest payment, rent, other earnings
3. How does income help me buy toys and snacks?When you have income, you can spend part of it on things you want, like toys and snacks, and keep the rest for other needs or saving.
4. What is the difference between gross income and net income?Gross income is the total money earned before any costs are taken out. Net income is what remains after subtracting costs like taxes, bills, and other expenses.

Haig-Simons Income: An economic measure of income including consumption and changes in net worth.
Discretionary Income: Income available for spending or saving after essential expenses and taxes.
Cost of Goods Sold (COGS): Direct costs attributable to the production or purchase of goods sold by a company.