Suppose the capital gains tax is 28 percent and you purchased a house ten years ago for $80,000. If you sold the house today you would get $140,000. Your tax liability would be
A) $39,200.
B) $16,800.
C) indeterminate without knowing the inflation rate.
D) indeterminate without knowing the personal income tax rate.
Answer: B
Economics
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When analyzing the effects of the government budget deficit
A) no distinction must be made between an economy where full employment exists and one where substantial unemployment exists. B) it is important to examine the effects of the reported capital budget and the reported operating budget separately. C) there should be a comparison of the effect of the deficit to the effects of higher taxes needed to eliminate it. D) the baseline budget should be used since it is the most accurate.
Economics
Economists call all the goods generated by a firm its total ______.
a. margin b. output c. production d. sales
Economics