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) $20,000.00.
B) $0.
C) $90,000.00.
D) $100,000.00.

Question

Quizplus · Accepted Answer

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

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