Serena purchased 10 shares of GLC, Inc stock for $200 per share; one year later she sold the 10 shares for $220 a share. Over the year, the price level increased from 135.0 to 143.1 . The tax rate on capital gains is 50 percent. If the capital gains tax is on nominal gains, how much tax does Serena pay on her gain?
a. $90
b. $95
c. $100
d. None of the above is correct.
c
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If the price elasticity of demand for a good is greater than one, then the demand for that good is:
A. unit elastic. B. perfectly elastic. C. inelastic. D. elastic.
The quantity of tickets demanded to the Super Bowl is always greater than the quantity supplied
Which of the following in the best explanation why the National Football League does not raise the price of tickets to the level where the quantity demanded equals the quantity supplied? A) The cost of raising the price and printing new tickets would exceed the revenue the NFL would receive from higher ticket prices. B) Raising the price would reduce the demand for tickets; there would then be a surplus and the game would not sell out. C) The demand for Super Bowl tickets is elastic; raising the price would reduce total revenue. D) The NFL is concerned that raising ticket prices would be considered unfair.
If you have a choice of consuming either two apples, three oranges, or one candy bar, the opportunity cost of the candy bar is:
a. two apples. b. three oranges. c. two apples and three oranges. d. two apples or three oranges, whichever you value more. e. the difference in the prices of the three options.
Suppose that you borrow $10,000 for one year, and at the end of the year, you must repay $10,350. The interest rate is
A) 10.35 percent. B) 6.5 percent. C) 3.5 percent. D) 2.7 percent.