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When someone owns an asset (such as a stock) that rises in value, he has an "accrued" capital gain. If he sells the asset, he "realizes" the gains that have previously accrued. Under the U.S. income tax, realized capital gains are taxed, but accrued gains are not.a) Explain how individuals' behavior is affected by this rule.b) Some economists believe that cuts in capital gains tax rates, especially temporary ones, can raise tax revenue. How might this be so?c) Do you think it is a good rule to tax realized but not accrued capital gains? why or why not?
Analyse a range of current economic issues and problems and develop and communicate economic arguments in a variety of forms.
Using a separate supply and demand diagram for each part, illustrate the effect of value of the yen in terms of dollars of each of the following;
what level of output are your average variable costs minimized and at what level of output are your average total costs minimized?
The great philosopher Rogers once said that you need holding knowledge (H), folding knowledge (F), and economics knowledge
You would like to determine if the average golf scores for women are different from the average golf scores for men. A random sample of female students scored an average of 115 with 95% confidence interval (112, 118). A random sample of male stu..
What objectives do unions serve? Are there other, more economically efficient, methods to achieve these objectives? What might those methods be?
What fact might lead the manager to be concerned? If true, what do you think is likely to happen to the price of products G.R. Dry Foods sells?
what was an example of the significant run-up in oil prices from 2005-2010. an aggregate demand shock that increased the price level and increased the rate of growth of real GDP.
In the long run, the Martha Mowers can assemble 300 mowers per week at a total cost of $18,000, 400 mowers at a total cost of $24,000, or 500 mowers at a cost of $35,000.Plot points of the long-run average cost curve for these three levels of outp..
Apply the rule of 70 to solve the following problem. Real GDP per person in Mexico in 2005 was about $12,000 per person, while it was about $48,000 per person in the United States
A small town is served by many competing supermarkets, which have constant marginal cost. Using the diagram of market for groceries, show the consumer surplus, producer surplus, and total surplus.
Show graphically how regulating the value of a monopolist can both increase quantity and lower price.
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