Kevin Provided Services to Several Clients This Year Who Paid

question 53

Multiple Choice

Kevin provided services to several clients this year who paid with different types of property.Which of the following payments is not included in Kevin's gross income?

• A)Cash.
• B)Shares of stock listed on the New York Stock Exchange.
• C)A used car.
• D)Gold coins.
• E)All of these are included in gross income.

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Definitions:

Elastic

Describes demand that is highly sensitive to changes in price, meaning that quantity demanded can significantly increase or decrease as prices change.

Average Cost

The total cost of production divided by the number of goods produced, representing the per-unit cost.

Marginal Revenue

The boosted income realized by vending one extra unit of a good or service.

Natural Monopoly

Firm that can produce the entire output of the market at a cost lower than what it would be if there were several firms.