If Two Goods Are Complements, Then Their

question 177

Multiple Choice

If two goods are complements, then their

• A) indifference curves are positively sloped straight lines.
• B) indifference curves are negatively sloped straight lines.
• C) indifference curves are L-shaped.
• D) marginal rate of substitution is infinity.

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Definitions:

Collectibles Tax Rate

The tax rate applied to gains from the sale of collectibles, such as art, stamps, coins, and antiques, which is often different from the rate on other capital gains.

Section 1245 Gain

Income derived from the sale or disposal of depreciable personal property, which may be recaptured as ordinary income.

Ordinary Income

Income earned from providing services, including wages, salaries, commissions, and income from businesses in which there is material participation.

Depreciation

A tax deduction reflecting the decrease in value of an asset over time due to wear and tear.