Question

Distinguish between capital income and mixed income.

Answer 1

	Basis	Capital Income	Mixed Income
1.	Definition	Income earned from the ownership and use of capital assets.	Income earned by self-employed individuals who contribute both labour and capital.
2.	Source	This includes components such as rent, interest, royalties, and profits from personal capital.	Income from farming, small shops, and businesses arises from the combined use of labour and capital by the same person.
3.	Income Type	Income from providing capital services.	Income from providing a combination of factor services.
4.	Labour Involvement	The owner does not contribute any labour.	Involves own labour, along with capital and enterprise.
5.	Examples	Rent, interest, royalty, dividends, and profits from enterprises.	Consider the income of a small shopkeeper, farmer, or self-employed professional.