State the meanings of : (a) Economic territory (b) Mixed income of self-employed (c) Compensation of employees

Question

Accepted Answer

(a) Economic territory:
Economic territory refers to the geographical territory administered by a government within which persons, goods, and capital circulate freely. It includes:
1. Continental shelf and exclusive economic zone
2. Embassies, consulates, and military establishments abroad
3. Ships, aircraft, and fishing vessels operated by residents
4. Fishing vessels, oil rigs, and floating platforms operated in international waters

(b) Mixed Income of self-employed:
Mixed Income is the income of self-employed persons who use their own land, labor, and capital. It is called 'mixed' because it contains elements of wages, rent, interest, and profit. Example: Income of a farmer who owns land, works himself, and uses his own capital.

(c) Compensation of employees:
Compensation of employees is the sum of wages and salaries paid to employees along with social security contributions and pension contributions by employers. It includes:
1. Wages and salaries in cash and kind
2. Employer's contributions to social security
3. Pension contributions