Zoe is a chemistry teacher earning a salary of \( \$ 38,000 \) per year. She also tutors part-time, charging \( \$ 20 \) per session. Which of the following types of income does Zoe have? I earned income II passive income III capital gains income a. I b. II c. I and II d. I and III

To determine the types of income that Zoe has, let's analyze the information provided: 1. **Earned Income**: This is income derived from active work, such as salaries, wages, and fees for services. Zoe's salary of \( \$ 38,000 \) from her teaching job is considered earned income. Additionally, the income she earns from tutoring, which is \( \$ 20 \) per session, also qualifies as earned income since it is payment for her active work. 2. **Passive Income**: This type of income is earned from investments or business activities in which the individual is not actively involved. Examples include rental income, dividends, and interest. Zoe's income from teaching and tutoring does not fall into this category, as both require her active participation. 3. **Capital Gains Income**: This income is derived from the sale of assets or investments, such as stocks or real estate, where the selling price exceeds the purchase price. Zoe does not have any mention of capital gains income in the information provided. Based on this analysis, Zoe has: - Earned income from her salary and tutoring. - No passive income. - No capital gains income. Thus, the correct answer is: **a. I** (Earned income only).