When Should You Consider the Tax Consequences of Selling Your

question 139

Multiple Choice

When should you consider the tax consequences of selling your investments?

• A) When you make your own decisions
• B) When you have professional help
• C) When the taxes due are less than $300 per transaction
• D) When you make your own decisions or when you have professional help
• E) When you are working with professionals and taxes due are less than $300 per transaction

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Definitions:

Substitutes Goods

Products or services that can replace or be used in place of another to fulfill the same need or desire.

Complementary Goods

Products or services that are consumed together because the use of one enhances the use or value of the other.

Income Elasticity

A measure of how much the demand for a good or service changes in response to a change in consumers' income.

Cross Elasticity of Demand

A measure of how the quantity demanded of one good responds to a change in price of another good, indicating substitutes or complements.