4. Problems and Applications Q4 When someone owns an asset (such as a share of 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. True or False: Individuals' decisions about whether to keep or sell assets are not affected by this rule. O True O False Cuts in capital gains tax rates can raise tax revenue if the lower tax rate ▼ the volume of trade transactions by a large enough margin.

4. Problems and Applications Q4 When someone owns an asset (such as a share of 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. True or False: Individuals' decisions about whether to keep or sell assets are not affected by this rule. O True O False Cuts in capital gains tax rates can raise tax revenue if the lower tax rate ▼ the volume of trade transactions by a large enough margin.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Essentials Final x + s/Microeconomic%20Essentials%20Final%200SA.pdf W 8 / 18 90% + QUESTION 12 Consider the following scenario: Q (4 Marks) Steven owns his own auto repair shop. He uses his own premises as a workshop. If he had rented his premises to someone else, he would have received R18 000 in rent. He initially invested R50 000 in his business to buy tools and machines. If he had invested the money, he could have earned 10% per year on the money, which is R5 000 per year. If he did not work for himself, he could have earned a salary of R60 000. His expenditure for the year consisted of the following: Oil, petrol, sparkplugs, fan belts and other materials: R70 000 Salary for two junior mechanics: R35 000 Admin costs: R15 000 Assume that the total revenue of the auto shop is R230 000. Calculate Steve's economic profit. a) R203 000 b) R110 000 c) R27 000 d) R32 000 DOLL 11 ENG 2024/0
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11. Decreases in the value of property with the passage of time is mainly due to a. deterioration of parts b. same price levels of similar property c. all of these d. adequacy of equipment 12. Dividend payable is identified as _____. a. quick asset b. expense c. owner’s equity d. current liability e. current asset 13. Juan buys t-shirt and wears it right away. The t-shirt is considered as ______ good. a. buyer b. retailer c.consumer d. producer
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