The gain that occurs when the owner of an asset actually sells it for more than she paid for it is called a(n)
A. coupon payment.
B. economic profit.
C. dividend.
D. realized capital gain.
Answer: D
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Based on the experience of the Great Depression and the New Deal, which one of the following strategies would be most likely to stimulate recovery from a serious economic recession?
a. increase trade restrictions and tariffs to save jobs and enhance tax revenue b. a reduction in the money supply in order to strengthen the dollar and combat inflation c. keep taxes low in order to stimulate production and minimize the decline in personal and business income d. institute frequent policy changes in order to search for and find the policy combination that would be most effective
In the game depicted below, firms 1 and 2 must independently decide whether to charge high or low prices.Firm 1Firm 2??High PriceLow Price?High Price(10,10)(5,-5)?Low Price(-5,5)(0,0)Which of the following are secure strategies for players 1 and 2, respectively?
A. (high price, high price) B. (low price, high price) C. (low price, low price) D. (high price, low price)
A consumer is willing and able to buy 100 units of a good at $100, but the consumer's quantity demanded falls to zero if the price rises even a fraction of a cent. The consumer's demand curve is
A. vertical and is perfectly elastic. B. horizontal and is perfectly elastic. C. horizontal and is perfectly inelastic. D. downward sloping from higher prices down to $10 and then horizontal.
A monopolistically competitive firm
A. sells a fixed amount of output regardless of price. B. should raise its price if it intends to reduce output. C. can sell an infinite amount of output at the market-determined price. D. should lower its price if it intends to reduce output.