A Person's Net Worth Is Computed By

question 112

Multiple Choice

A person's net worth is computed by:

• A)adding assets and liabilities.
• B)deducting current living expenses from total assets.
• C)subtracting total liabilities from total assets.
• D)subtracting assets from current liabilities.
• E)adding liabilities and budgeted expenses.

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Definitions:

Opportunity Cost

The price paid for not selecting the best available alternative when deciding.

Bushel

A unit of volume that is used primarily in the United States to measure agricultural commodities, equivalent to approximately 35.24 liters.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, enabling beneficial trade.

Absolute Advantage

The capacity of a nation, individual, organization, or area to generate a product or offer a service at a cost per unit that is less than what any other party can produce that same good or service for.