Mike purchased a 1968 Chevy Corvette in 2009 for $30,000 and a year later he sold it for $36,000. Due to these transactions
A. Mike earned a dividend of $36,000.
B. Mike earned a capital gain of $6,000.
C. Mike earned a capital loss of $6,000.
D. Mike earned a dividend of $600.
Answer: B
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Assume that Figure 4-16 shows the supply of steak. An increase in the price of pork will change the supply from
a. S1to S2. b. S2to S1. c. S2to S3. d. S1to S3.
Assume a perfectly competitive firm is producing 500 units of output, P = $7, ATC of the 500th unit is $6, marginal cost of the 500th unit = $7, and AVC of the 500th unit = $5. Based on this information, the firm is:
A) earning an economic profit of $500. B) earning an economic profit of $1,000. C) incurring a loss of $500. D) incurring a loss of $1,000.
Prices, on average, increased in the food market; the demand for food had simply grown faster than supply from the end of the Civil War in 1865 to the beginning of World War I in 1913
Indicate whether the statement is true or false
When competing power blocs exist within an oligopolistic industry,
a. concentration ratios are low b. the laissez-faire approach can be justified c. prices are higher than under monopoly d. nationalization is necessary e. contestable markets exist by definition