Wages earned over the course of a year are a worker's:

• A. Retained earnings
• B. Operating expenses
• C. Gross income
• D. Net sales

Answer: (C)

Verified step by step guidance

1. Understand the concept of 'Gross Income': Gross income refers to the total earnings a worker receives before any deductions such as taxes, insurance, or retirement contributions. It is the starting point for calculating net income.
2. Clarify why 'Retained Earnings' is incorrect: Retained earnings are profits that a company keeps after paying dividends to shareholders. This term applies to businesses, not individual workers.
3. Clarify why 'Operating Expenses' is incorrect: Operating expenses are costs incurred by a business to maintain its operations, such as rent, utilities, and salaries. This term does not apply to individual earnings.
4. Clarify why 'Net Sales' is incorrect: Net sales refer to a company's revenue after deducting returns, allowances, and discounts. This term is unrelated to individual wages.
5. Conclude that 'Gross Income' is the correct answer: Wages earned over the course of a year represent the worker's gross income, as it is the total amount earned before any deductions.