You Bought Some Shares of Stock and Sell Them One

question 62

Multiple Choice

You bought some shares of stock and sell them one year later.At the end of the year,the price per share was 5 percent higher and the price level was 3 percent higher.Before taxes,you experienced

• A)both a nominal gain and a real gain,and you paid taxes on the nominal gain.
• B)both a nominal gain and a real gain,and you paid taxes only on the real gain.
• C)a nominal gain and a real loss,and you paid taxes on the nominal gain.
• D)a nominal gain and a real loss,and you paid no taxes on the transaction.

Analyze the effects of policies and costs on economic decisions.

Understand the concept of marginal benefits and marginal costs in decision-making.

Understand the concept of opportunity cost and how it influences economic decisions.

Recognize the secondary effects of economic policies and individual choices.

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Definitions:

Endocrine Glands

Glands of the endocrine system that release hormones directly into the bloodstream, regulating various bodily functions including metabolism, growth, and mood.

Spinal Cord

The cylindrical bundle of nerve fibers and associated tissue that is enclosed in the spine and connects nearly all parts of the body to the brain, forming the central nervous system.

Genetics

The scientific study of heredity and the variation of inherited characteristics.

Cerebral Cortex

The outer layer of the brain, involved in complex functions such as thought, perception, and memory.