Which of the Following Is True

question 204

Multiple Choice

Which of the following is true?

• A) Scarcity and poverty are basically the same thing.
• B) Poverty implies that some basic level of need has not been attained.
• C) Scarcity is the result of prices being set too high.
• D) All of the above are true.

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Definitions:

Basis

The original value or cost of an asset for tax purposes, used to determine capital gains or losses.

FMV

Stands for Fair Market Value, which is the price an asset would sell for on the open market, where both buyer and seller have reasonable knowledge of the asset and are willing to trade without pressure.

Basis

The amount of an investment in property for tax purposes; the starting point for determining gain or loss.

Recognize Gain

The process of reporting the profit from a sale or exchange of an asset for tax purposes.