Question

Why is contractual income considered different from earned income?

Options

• Contractual income comes from productive work only

• Earned income does not involve any agreement

• Contractual income is received by fulfilling an agreement, earned income is just for doing work

• Both are received without effort

Answer 1

Contractual income is received by fulfilling an agreement, earned income is just for doing work

Explanation:

Contractual income is earned as per an agreement or contract, whereas earned income is for productive work done without a formal agreement.