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Peter, a single taxpayer, bought a house to use as a rental property on April 1, 2007, for $300,000. He moved into the house on June 1, 2013, and used it as his personal residence until August 1, 2014, when he sold it for $500,000. Depreciation taken while the property was used as a rental property was $25,000. What was Peter’s? A. Realized gain on the sale of the property? B. Recognized gain on the sale of the property? C. Recognized gain on the sale of the property if it is not sold until August 1, 2015, for $500,000?
Explain how the long run differs from the short run in pure competition. Explain how the entry and exit of firms affects resource flows and long-run profits and losses.
You want to study the probability of a basketball player getting drafted in the NBA. You collect data on their performance in college basketball tournaments. The dependent variable is 1 if the player gets drafted, and 0 otherwise. What would your nul..
Elucidate how Coldwell Banker can produce the same output at a lower total cost
In 2004, a Massachusetts woman won 5.6 million dollars in the lottery, which would have paid her an initial gross payment of $283,770 and 19 more yearly payments of $280,000. Instead she sued the lottery commission for a lump-sum payment. How much mo..
Studies indicate that the price elasticity of demand for cigarettes is about 0.4. if a pack of cigarettes currently costs $2 and the government wants to reduce smoking by 20%, by how much should it increase the price?
Constrained Optimization in Economics 2. Minimize costs for a firm with a cost function Subject to the production quota
Consider an oligopolistic market with two firms. Each of them produces using a cost function then what is the value of that maximizes total consumer well-being?
If country desires to smooth consumption, explain how much it should borrow in period 0. Illustrate what will level of consumption and trade balance is from then on.
How does the Average Total Cost (ATC) of the mines in Canada compared to the ATC of the Alabama mines? Sketch the ATC and Marginal Cost of the whole company (include all mines in the graph, the graph has to be approximate, it should give an idea of h..
Several questions in this problem set are based on the 8/19/12 Wall Street Journal article "Cartel Pushes Up Price of Rubber." This article is at the end of the module on Antitrust Policy. Stopping production of rubber-based products and diversifying..
A leading organization, inspired by the Grameen bank, is attempting to provide loans to small farmers. it is leading to farmers in groups of two. Explain three reasons why a strategy of group leading may be better than a strategy of lending to indivi..
You have studied the judicial branch of government, with emphasis on the Supreme Court, and the rulings they have made which have had wide-ranging effects on everyone in America. Describe the background of each of the two cases – the reason a case wa..
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