James is a resident of the U.S. and has accrued capital gains on an asset. If James sells the asset, ________.
A. its purchase price will include the amount of capital-gains tax payable
B. he will realize the gain and owe capital-gains tax
C. his capital-gain will be tax free
D. the buyer of the asset will owe capital-gains tax
Answer: B
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Which of the following is the best explanation of why a lack of information is a problem when the government wants to impose price regulation on a monopolist?
a. the government does not have information about which firms are monopolies. b. firms that are monopolies do not have information about their level of profit or about potential competition. c. consumers do not have information about which firms are competitive and which firms are monopolies. d. regulators do not have information about the demand and marginal costs of the firms that they regulate.
Describe the role of bank leverage in bank insolvency during times of falling asset prices
The demand for labor and other factors of production typically decline in a recession because those factors
A. Are derived from the demand for final output, which also declines in a recession. B. Are no longer offered for sale in factor markets. C. Have become more expensive than before the recession. D. Have become relatively scarcer than before the recession.
In the long run
A. all costs are variable. B. total variable cost equals total fixed cost. C. total fixed cost is greater than total variable cost. D. all costs are fixed.