Related to the Economics in Practice on page 238: An investor in the stock market experiences capital gains whenever
A. the company that issued the stock makes a profit.
B. shares of stock are sold for mor e than their purchase price.
C. shares of stock are sold.
D. shares of stock are traded for stock in another company.
Answer: B
You might also like to view...
The federal government relies on ________ to limit inequality
A) regressive taxes B) proportional taxes C) progressive taxes D) marginal taxes
If an individual's income increases
A) the person's indifference curves shift outward in a parallel manner. B) the person's budget line shifts outward in a parallel manner. C) there will be no impact on the individual's budget line or indifference curves. D) None of the above answers is correct.
If the price of automobiles was to increase, then
A) the quantity of gasoline demanded would decrease. B) the demand for gasoline would increase. C) the demand for gasoline would decrease. D) the supply of gasoline would increase.
Assume that the government can reduce car pollution using either a corrective tax or a regulatory scheme, both of which will achieve the same results in the short-run
In the long run, however, the regulatory scheme will be more efficient because it provides incentives to avoid the regulation altogether. a. True b. False