With Respect to Earned, Passive, and Portfolio Incomes, Which of the Following

question 14

Multiple Choice

With respect to earned, passive, and portfolio incomes, which of the following statements is not true?

• A) All gains are taxed as ordinary income
• B) All losses are netted against each other
• C) Losses are distinct with respect to each other and a loss from one type may not be used to offset income from another type
• D) A and C
• E) All of the above statements are true

---

Definitions:

Oligopolists

Firms within a market structure where a small number of companies have significant market control.

Collude

To cooperate secretly or illegally with others, typically to deceive or gain an unfair advantage.

Zero Profits

a situation where a firm's total revenues are exactly equal to its total costs, typically occurring in perfectly competitive markets in the long run.

Noncooperative Equilibrium

A situation in which individuals or firms choose their strategy based on the anticipation that others will act in their own self-interest, leading to an outcome where no participant can benefit by changing their strategy unilaterally.