During 2016, Victorʹs consumption equals $30,000 and the change in his net worth is -$5,000. Victorʹs economic income for 2013 is

Question

Quizplus · Accepted Answer

Victor's economic income is calculated by adding his consumption to the change in his net worth. Since his consumption is $30,000 and the change in his net worth is -$5,000 (a decrease), his economic income is $30,000 - $5,000 = $25,000.

During 2016, Victorʹs Consumption Equals $30,000 and the Change in His