A capital gain is defined as
A) the tax paid when one sells an asset.
B) the positive difference between the sale price and the purchase price of an asset.
C) the tax rate one pays when one moves into a higher tax bracket.
D) an unanticipated increase in income.
Answer: B
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In computing GDP, it is essential to
A) avoid double counting. B) include government transfer payments. C) include government tax revenues. D) count all intermediate products directly as they are produced.
Suppose that the government imposes a $2 a cup tax on coffee. What de-termines by how much Starbucks will raise its price? How will the quantity of coffee bought in coffee shops change? Will this tax raise much revenue?
What will be an ideal response?
An individual labor-demand curve represents:
A. a worker's decisions around how many hours to work at each alternative wage. B. the decisions of all workers around how many hours to work at each alternative wage. C. a firm's decisions around how many hours to hire at each alternative wage. D. the decisions of all firms around how many hours to work at each alternative wage.
A deficit refers to the accumulated differences between revenues and expenditures over time
Indicate whether the statement is true or false