A capital gain is the increase in value of an asset above its initial cost.
Answer the following statement true (T) or false (F)
True
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Refer to the scenario above. Which of the following will happen if the equilibrium price charged by the firm in the short run is $130?
A) The firm will earn positive economic profits and continue production. B) The firm will incur a loss but continue production. C) New firms will enter the industry in the long run. D) All firms will incur losses in the long run.
Under a progressive tax system:
a. the average tax rate increases with increases in real GDP. b. the average tax rate remains constant with changes in real GDP. c. the average tax rate falls with increases in real GDP. d. government tax receipts increase when the economy is in a recession. e. government tax receipts decrease when the economy is expanding.
The sum of the explicit and implicit costs incurred in the production process is called
a. fixed cost. b. sunk cost. c. marginal cost. d. total cost.
A rightward shift of the production possibilities frontier of an economy represents: (check all that apply)
a. an increase in the average price level in the economy. b. economic growth. c. an increase in the quantity of resources. d. an increase in the overall demand for goods and services in the economy.