Which of the following is an example of earned income?

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Multiple Choice

Which of the following is an example of earned income?

Earned income is money you receive for work you perform. Wages from a job and income from self-employment come from actively providing labor or services, so they are earned. In contrast, interest from a bank account is passive income earned from owning money rather than from working. A pension is retirement income based on past employment, not current work. Unemployment benefits come from government programs and are transfer payments, not wages for work done. So the example of earned income is wages from a job and money from self-employment.

Earned income is money you receive for work you perform. Wages from a job and income from self-employment come from actively providing labor or services, so they are earned.

In contrast, interest from a bank account is passive income earned from owning money rather than from working. A pension is retirement income based on past employment, not current work. Unemployment benefits come from government programs and are transfer payments, not wages for work done.

So the example of earned income is wages from a job and money from self-employment.

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