Which of the Following Statements Is True

question 39

Multiple Choice

Which of the following statements is true?

• A)A taxpayer's personal residence qualifies for a like-kind exchange.
• B)A taxpayer who sells a personal residence may always exclude the realized gain from taxable income.
• C)A one-time election is available to taxpayers 55 years of age or older which allows them to sell their personal residences and to exclude all of the realized gain.
• D)None of the above are true.
• E)All of these

---

Definitions:

Weak Axiom

A principle in consumer choice theory stating that if a consumer prefers bundle A over bundle B when both are available, then the consumer should not prefer B over A when prices change but A and B remain affordable.

Revealed Preferences

A theory that determines preferences by observing consumer choices and behaviors rather than asking them directly.

Francs

A currency formerly used in France and other countries, replaced by the euro in many areas.

Strong Axiom

Often refers to the strong axiom of revealed preference, which is a more stringent condition than the weak axiom, ensuring choices are consistent across different sets of available options.