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

question 75

Multiple Choice

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

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Definitions:

Simple Delivery Contract

Type of contract in which purchased goods are transferred to the buyer from the seller either at the time of the sale or at some time later by the seller’s delivery.

Merchant

An individual or business that sells goods or services in a commercial setting.

Destroyed Through Fire

Destroyed through fire describes the complete loss or devastation of property, goods, or structures as a result of a fire outbreak, often leading to insurance claims and legal considerations.

Common-Carrier Delivery Contract

A type of contract in which purchased goods are delivered to the buyer via an independent contractor, such as a trucking line.