Question

Describe and compare primary and secondary commodities and give two examples of each.

Compare and contrast three types of income.

Answer 1

Primary commodities are unprocessed commodities which has been extracted directly from the natural resources whereas secondary commodities are all those commodities which have been processed out of the primary commodities to meet with the market demand

Example of primary commodities will be raw materials and agricultural goods. Raw material can include coal, gold bauxite.

Example of secondary commodities will be Butter, chips.

Three Types of incomes are earned income along with capital gains income and passive income .

Earned income will mean that income which has been directly earned with active work and these have higher amount of tax where as capital gains will be income arising out of capital gain and have lower tax and passive income will be income arising out of no efforts and complete long term Investments.