Which of the Following Statements Is False

question 47

Multiple Choice

Which of the following statements is false?

• A) In Canada, shareholders typically must pay taxes on the dividends they receive.
• B) In Canada, taxes on capital gains income are deferred until the stock is sold; thus the present value of the taxes on capital gains is usually substantially less than the taxes on dividends
• C) The actual difference in tax rates on dividend income and capital gains income has changed over the years in both Canada and the United States.
• D) Historically in Canada, the taxes applied to capital gains income have been higher than taxes applied to dividend income.

---

Definitions:

Marginal Revenue

The additional income received from selling one more unit of a product.

Marginal Cost

The additional cost resulting from the production of one more unit of a product or service.

Profit Maximizing

The procedure a business uses to ascertain the most profitable price and volume of output.

Monopolist

A single seller in a market, who has significant control over the price and supply of a specific good or service.