Jerry Has Assets of $200 000, a Net Worth of $150

question 58

Multiple Choice

Jerry has assets of $200 000, a net worth of $150 000, and an annual income of $50 000. What are Jerry's liabilities?

• A)$100 000
• B)$50 000
• C)$150 000
• D)$400 000

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Definitions:

Circular Flow

A model in economics that depicts how goods and services and money move through the economy between households, businesses, government, and foreign sectors.

Value Added

The increase in worth of a product or service as a result of a particular process, calculated by the difference between the sale price and the production cost.

Double Counting

The error of including the same transaction or item more than once in a calculation or analysis, leading to inaccurate results.

Injections

Additional spending entering the economy, typically through government spending, investment, and exports, which stimulates economic activity.