Which of the Following Will Increase Your Net Worth Over

question 63

Multiple Choice

Which of the following will increase your net worth over time?

• A)Leasing a car
• B)Renting a house
• C)Buying a house
• D)Term insurance

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Definitions:

Rental Rate

Cost per year of renting one unit of capital.

Competitive Market

A competitive market is a market structure characterized by many buyers and sellers, such that no single participant has significant influence over the price of products or services.

Isocost Curve

An isocost curve represents all combinations of inputs which result in the same total cost for a firm, essentially showing the trade-offs between different types of inputs while maintaining the same budget.

Wage Rate

The amount of money paid to an employee per unit of time worked, often expressed per hour or year.