QAEconomics › Savings should be treated as another type of:
Q

Savings should be treated as another type of:

A. gross income

B. net income

C. tax

D. expenditure

A

Answer: B. net income

Net income is the total amount of earnings that remains after all the deductions have been made from the sales. Savings is done voluntarily by the income holder after all other expenditures necessary to sustain living have been set aside. Savings does not imply giving money to get a good or service done but is all about holding money for future use. The appropriate answer, therefore, is net income i.e. income after all expenditures.

2 years ago
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