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When someone owns an asset (such as a share of stock) that

Principles of Microeconomics | 7th Edition | ISBN: 9781285165905 | Authors: N Gregory Mankiw ISBN: 9781285165905 94

Solution for problem 6 Chapter 12

Principles of Microeconomics | 7th Edition

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Principles of Microeconomics | 7th Edition | ISBN: 9781285165905 | Authors: N Gregory Mankiw

Principles of Microeconomics | 7th Edition

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Problem 6

When someone owns an asset (such as a share of stock) that rises in value, he has an accrued capital gain. If he sells the asset, he realizes the gains that have previously accrued. Under the U.S. income tax system, realized capital gains are taxed, but accrued gains are not.a.Explain how individuals behavior is affected by this rule.b. Some economists believe that cuts in capital gains tax rates, especially temporary ones, can raise tax revenue. How might this be so?c.Do you think it is a good rule to tax realized but not accrued capital gains? Why or why not?

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9/1/2016 BUSI 342 Human Resource Management Chapter 1 Notes Human Resource (HR) Management  Design of formal systems in an organization  HR Department o Develops legal, effective interviewing techniques o Trains managers in conducting selection interview o Conducts interviews and tests o Sends top applicants to managers for financial interview o Checks references o Does final interviewing and hiring for certain job classifications  Managers o Advise HR of job openings o Decide whether to do own final interviewing o Receive interview training from HR unit o Do final interviewing and hiring where appropriate o Review reference information

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Chapter 12, Problem 6 is Solved
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Textbook: Principles of Microeconomics
Edition: 7
Author: N Gregory Mankiw
ISBN: 9781285165905

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When someone owns an asset (such as a share of stock) that