Why Is Net Worth a Better Way to Measure the Wealth

question 10

Multiple Choice

Why is net worth a better way to measure the wealth of the very rich, who traditionally are guarded about their actual worth?

• A) Net worth includes anything that can converted to cash, including a home or homes.
• B) Net worth measures everything that can be immediately sold.
• C) Net worth includes all taxable assets.
• D) Net worth excludes debts, which cannot be used to measure wealth.

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Definitions:

Kilowatt-Hours

Kilowatt-hours, abbreviated kWh, measure energy usage or production over time, indicating the amount of energy equivalent to the steady power of one kilowatt running for one hour.

Linear Model

A model that describes a linear relationship between two or more variables, where the change in the dependent variable is proportional to the change in the independent variables.

Electricity Usage

The amount of electrical energy consumed by a household, business, or device.

Fuel Efficiency

A measure of how effectively a vehicle uses fuel, often expressed in miles per gallon (mpg) or liters per 100 kilometers (l/100km).