The country of Robinya has a tax system identical to that of the United States. Suppose someone in Robinya bought a parcel of land for 10,000 deera (the local currency) in 1970 when the price index equaled 100 . In 2010, the person sold the land for 100,000 deera, and the price index equaled 500 . The tax rate on nominal capital gains was 20 percent. Compute the taxes the person paid on the
nominal gain and the change in the real value of the land in terms of 2010 prices to find the after-tax real rate of capital gain.
a. -20 percent
b. 20 percent
c. 42 percent
d. 64 percent
d
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The total value of all outstanding federal government securities is called
A) the budget deficit. B) crowding out. C) the public debt. D) the trade deficit.
During the era from 1880 to 1920, the U.S. economy experienced a rise in big business, an expansion in industry and increased concentration in both
Indicate whether the statement is true or false
Suppose Chip's Chips produces bags of potato chips that sell for $3 a bag. What was the total revenue for Chip's Chips?
A. Cannot answer this question without knowing the quantity of bags sold. B. Cannot answer this question without knowing the cost per bag. C. Cannot answer this question without knowing the cost per bag and the quantity of bags sold. D. Cannot answer this question without knowing what market share they hold.
In controlling the nation's money supply, the Fed is obligated to seek the advice of
A) the Congress. B) the President of the United States. C) the Treasury. D) a and b E) none of the above