Tony and Crisesa Are Married and Live in Vermont

question 143

Multiple Choice

Tony and Crisesa are married and live in Vermont.In 1992,they purchase realty for $200,000 (Crisesa provides $150,000 and Tony $50,000) and list ownership as joint tenants with right of survivorship.In the current year,Tony dies first when the realty is worth $800,000.One result of these events is:

• A)Tony's gross estate includes $200,000.
• B)Tony's gross estate includes $400,000.
• C)Tony's gross estate includes $600,000.
• D)In 1992, Crisesa made a gift to Tony of $100,000.
• E)None of the above.

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Definitions:

MC

Abbreviation for Marginal Cost, which refers to the increase or decrease in the total cost of production when the quantity produced is adjusted by one additional unit.

Wage Rate

The amount of money paid to an employee per unit of time, often per hour or year.

Marginal Product

The additional output produced by adding one more unit of a specific input, keeping all other inputs constant.

Perfectly Competitive

A market structure characterized by a large number of sellers and buyers, homogeneous products, and no barriers to entry or exit, leading to the optimal allocation of resources.