Economic costs
A. are equal to total revenue minus accounting profit.
B. include both a normal rate of return on investment and the opportunity cost of each factor of production.
C. are the opportunity cost of each factor of production minus any interest charges paid on borrowed funds.
D. are equal to the direct costs of hiring all factors of production.
Answer: B
You might also like to view...
Other things equal:
A. Workers with higher levels of human capital will tend to migrate to countries providing greater wage opportunities B. Workers with lower levels of human capital will tend to migrate to countries providing greater wage opportunities C. Smaller wage differences between countries will tend to increase the flow of immigration between countries D. Workers with higher levels of human capital will migrate to higher-wage countries regardless of the distance between countries
An inferior good exhibits
A) a negative income elasticity. B) a downward sloping Engel curve. C) a decline in the quantity demanded as income rises. D) All of the above.
A high level of air pollution worsens the health condition of Cynthia, who is asthmatic. This is an example of a positive externality
a. True b. False Indicate whether the statement is true or false
A bond pays a coupon (or interest) rate of 5 percent each year for five years, with a future (face) value of $200. If the bond was sold today, what would be the present value of the bond?
A. $200 B. $157 C. $150 D. $145