Households are said to have positive wealth when
A) the market value of their assets is zero.
B) the value of their assets is greater than the debts they owe.
C) the value of their assets is equal to the debts they owe.
D) the value of their assets is less than the debts they owe.

Question

Quizplus · Accepted Answer

Positive wealth means that the value of assets held by a household is greater than the debts they owe, so option B is the correct answer. Option A is incorrect because having assets with zero market value means no positive wealth. Option C is incorrect because having assets equal to debts means zero net wealth. Option D is incorrect because having debt greater than the value of assets means negative wealth.

Households Are Said to Have Positive Wealth When