What is Personal Income?
Definition of Personal Income: It can be explained as an statistic that measures the whole annual earning of an individual earned from business enterprise, different investments and wages. The Bureaus of Economic Analysis of the bureau of United States calculates the statistic and explains it in a more specific manner as the income attained by the people from different sources. It consists of income attained from the participation in the production and from the business and government transfer expenses. It is regarded as the total of compensation of the workers, supplements of salaries and wages, the income of the proprietor with and adjustment of inventory valuation and adjustment of the capital consumption, rental income of people with adjustment in capital consumptions and existing transfer receipts. The utilization of personal income expands to evaluate the income. The personal income is vital in predicting growth in the economies that are driven by the consumer.