2. Income for most people is determined by the
market value of the productive resources
they sell.
3.
4. To earn income, people sell productive
resources. These include their
labor, capital, and natural resources and
entrepreneurial talents.
In a market economy, the market value of a
resource is determined primarily by the
supply and demand for that resource.
5.
6. A wage or salary is the price of labor; it
usually is determined by the supply of and
demand for the skills and knowledge
(human capital) a person has.
