Measure of the change in wealth of the morrison household


Problem: The Morrison household has two children in childcare and they own a house and shares in the stock market. In 2020 they had a gross income of $195,000 and paid income taxes of $40,000. They received $15,000 in cash from the government to help with childcare costs (assume they pay no tax on this $15,000). Their consumption was $90,000. During 2020 the market value of the Morrison's house increased from $1,980,000 to $2,100,000 The value of their share portfolio fell from $10,000 to $8,500. Which of the following figures is the best measure of the change in wealth of the Morrison household during the year?

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Microeconomics: Measure of the change in wealth of the morrison household
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