James is a resident of the U.S. and has accrued capital gains on an asset. If James dies prior to the realization of capital gains, ________.
A. his heirs will have to pay the tax on gains
B. his heirs can sell the asset and the gains will be tax-free
C. his heirs will have to pay a death tax along with the capital-gains tax
D. his heirs will not be able to sell the asset
Answer: B
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Based on the demand curves for perfectly competitive firms and monopolists, the loss in revenue due to price effect applies to ______.
a. only monopolists
b. only perfectly competitive firms
c. both monopolists and perfectly competitive firms
d. neither monopolists nor perfectly competitive firms
In a flexible exchange rate system:
(a) The government intervenes to influence the exchange rate. (b) The exchange rate should adjust to equate the supply and demand of the currency. (c) The Balance of Payments should always be in surplus. (d) The Balance of payments will always equal the government budget.