You Own Stock That Increases in Value by $3,000 but You

question 159

Multiple Choice

You own stock that increases in value by $3,000 but you do not cash in the stock. The $3,000 is

• A) counted as part of economic income but not part of taxable income.
• B) counted as both economic and taxable income.
• C) counted as taxable income but not economic income.
• D) counted as neither taxable nor economic income.

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Definitions:

Standard Normal Distribution

Normal distribution measured in standard deviation units with a mean equal to 0 and a standard deviation equal to 1.

Sampling Distribution

The distribution pattern of probabilities for a certain statistic obtained through random sampling.

Alpha (α)

Probability of a statistic used to make the decision whether to reject the null hypothesis.

Sampling Distribution

The chance distribution for a statistic identified from a random sample.