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

• A. Net sales
• B. Cost of goods sold
• C. Gross income
• D. Operating expenses

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. Identify the key terms in the problem: The problem mentions 'wages earned over the course of a year,' which aligns with the definition of gross income as it represents total earnings before deductions.
3. Differentiate between the options provided: Net sales, cost of goods sold, and operating expenses are terms typically used in business accounting, not personal income. Gross income is the correct term for wages earned by a worker.
4. Relate the concept to real-world scenarios: For example, if a worker earns \$50,000 annually, this amount is their gross income before any deductions are applied.
5. Conclude the reasoning: Based on the definitions and context, wages earned over the course of a year are classified as gross income, as it represents the total earnings before any deductions.