A Capital Gain Occurs When an Asset Has Been Held

question 36

Multiple Choice

A capital gain occurs when an asset has been held for

• A) more than six months.
• B) less than six months.
• C) any length of time.
• D) more than one year.

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Definitions:

Demand Curve

A visual depiction that illustrates the correlation between a product or service's price and the amount consumers are willing to purchase at different price points.

Profit-maximizing

How a company decides on the price and production rate that leads to the greatest financial gain.

Output Units

The quantity of product or service produced by a company or a production process.

Patent

A barrier to entry that grants exclusive use of the patented product or process to the inventor.