On November 1, Year 1, Jamie (Who Is Single)purchased and Moved

question 88

Multiple Choice

On November 1, year 1, Jamie (who is single) purchased and moved into her principal residence. In the early part of year 2, Jamie was laid off from her job. On February 1, year 2, Jamie sold the home at a $35,000 gain. She sold the home because she found a new job in a different state. How much of the gain, if any, may Jamie exclude from her gross income in year 2?

• A)$0.
• B)$3,125.
• C)$31,250.
• D)$35,000.

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Definitions:

Shift Inward

A decrease in the supply or demand of a product, represented by a leftward movement on a graph.

Physical Capital

Refers to the human-made resources used in the production of goods and services, such as machinery, buildings, and equipment.

Inefficiently

In a manner that does not make the best or optimal use of resources, leading to waste or suboptimal outcomes.

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another.