At the beginning of the year, your wealth is $10,000. During the year, you have an income of
$80,000 and you spend $90,000 on consumption. You pay no taxes. Your wealth at the end of the year is
A)$90,000.
B)$100,000.
C)$0.
D)$20,000.

Question

Quizplus · Accepted Answer

Your wealth at the end of the year is calculated by adding your initial wealth to your income and then subtracting your consumption. So, $10,000 (initial wealth) + $80,000 (income) - $90,000 (consumption) = $0.

At the Beginning of the Year, Your Wealth Is $10,000