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 goods and services.You pay no taxes.Your wealth at the end of the year is
A)$10,000.
B)$20,000.
C)$0.
D)$90,000.
E)$100,000.

Question

Quizplus · Accepted Answer

Wealth is calculated as income minus consumption goods and services. In this case, the person's income is $80,000 and they spent $90,000 on consumption goods and services, resulting in a negative savings of -$10,000. Therefore, their wealth at the end of the year is $10,000 - $10,000 = $0.

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