A realized capital gain is
a. the difference between the price of a share of stock and what the investor paid for it (i.e., the broker's fee)
b. the difference between the original value of a piece of equipment and its depreciated value
c. an increase in the net worth of a sole proprietorship or partnership
d. an increase in the market value of a share of stock held by an individual
e. the difference between the selling price and the purchase price of a share of stock
E
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Which of the following is a valid reason to consider government regulation?
A. Seeking some social objective that markets do not achieve. B. Fear that capitalism will prove too productive. C. Desire on the part of government to be useful. D. Requests for protection for an industry. E. All of the responses are correct.
The long run aggregate supply curve (LRAS) also represents
A) the full-employment level of output. B) the full-information level of output. C) the full-adjustment level of output. D) all of the above.
One reason for having a monetary policy framework is:
A. it can make goal setting vague enough so that the central bankers can always claim success. B. it makes clear what specific goals the central bankers are pursuing. C. it provides leeway for central bankers to change their goals without communicating the change and disrupting financial markets. D. it provides central bankers the secrecy needed to perform their jobs effectively.
Some companies subject their applicants to extensive tests. Why?
A) to reduce the informational asymmetry between the firm and the applicant B) to screen the applicant to avoid the problem of adverse selection C) to gather more information about the applicant D) All of the above.