Chapter 30: Problem 24

The superrich get most of their income from ____. a) rent, interest, and profits b) wages c) illegal transactions d) real estate investments

Short Answer

Expert verified

The correct answer is a) Rent, interest, and profits. This option covers the various investments that the superrich might have and serves as their primary source of income.

Step by step solution

Analyze the Options

Look closely at each of the given options: a) Rent, interest, and profits b) Wages c) Illegal transactions d) Real estate investments

Evaluate Option A

Rent, interest, and profits are three major sources of income for the superrich. This category represents passive income that is commonly associated with investments in various assets such as stocks, bonds, and real estate. Think about whether this can be the primary source of income for the superrich.

Evaluate Option B

Wages are payments received for work or services performed, usually calculated on a periodic basis. While some superrich might earn substantial salaries, it is typically not the main source of income for this group, as their wealth is often derived from their investments and other financial assets. Therefore, wages should not be the primary source of income for the superrich.

Evaluate Option C

Illegal transactions refer to any activities that generate income through unlawful means. While it may be the case that some superrich individuals obtain income through illegal transactions, it is not appropriate to assume that the majority of their income derives from such activities. Thus, this option can be eliminated as well.

Evaluate Option D

Real estate investments involve purchasing property as a means of income generation, either through rental income or through appreciation in value. Although this can be a significant source of income for the superrich, it is not the only source and is already included in option A - rent, interest, and profits.

Select the Correct Answer

Based on the analysis of each option, the most appropriate answer is: a) Rent, interest, and profits This is the most suitable choice as it covers the various investments that the superrich might have and serves as their primary source of income.

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