Which of the following statements is true of capital gains in the U.S.?
A. Capital gains are taxed only if they are long-term.
B. Capital gains are taxed only for low-income groups.
C. Capital gains are taxed on accrual.
D. Capital gains are forgiven at death.
Answer: D
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The point of profit maximization for a monopolist is exemplified by
A) TR = TC. B) MR = MC. C) ATCmin. D) MR > MC.
Suppose that population grows by 2 percent annually. For the standard of living to rise, which of the following must occur?
a. Nominal GDP must grow by more than 2 percent. b. Real GDP must grow by more than 2 percent. c. Real GDP per capita must grow by more than 2 percent. d. Consumption spending must grow by more than 2 percent. e. Private investment spending must grow by more than 2 percent.
As a result of specialization and trade, individuals no longer have to make choices about how to spend their incomes.
Answer the following statement true (T) or false (F)
The return to any factor of production that is in fixed supply is
A. producer surplus. B. factor surplus. C. pure profit. D. pure rent.