When the purchase price of an asset is less than its sale price, then there is a

A) budget deficit.
B) corporate income tax.
C) capital gain.
D) capital loss.


D

Economics

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When external benefits exist, which of the following can produce the efficient amount of output?

I. vouchers II. private subsidies III. taxes IV. marketable permits. A) I and II only B) I and III only C) II and IV only D) III and IV only

Economics

For developed countries like the United States, GDP will always exceed GNP

Indicate whether the statement is true or false

Economics

Specialization of labor means that: a. production requires a special kind of labor

b. the overall skill level of labor is increasing. c. individuals produce goods other than those they want to consume. d. individuals achieve self-sufficiency in production. e. exchange within an economy consists of trading in services.

Economics

Jim, an avid biker, broke his leg last year and will never be able to use his bike again. He was offered $100 for it last year, but Jim refused to sell it, insisting it was worth more. A year later, he's offered only $75 for it, but Jim still refuses to sell it. Jim's behavior could be explained by:

A. limited processing power. B. the endowment effect. C. status quo bias. D. substitution effect.

Economics