Which of the following describes the out-of-pocket costs a firm pays?
a. Revenue costs
b. Explicit costs
c. Economic costs
d. Implicit costs
b. Explicit costs
Explicit costs are out-of-pocket costs; that is, payments that are actually made.
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In calculating the nation's total output, net exports
a. represent exports of goods and services minus imports of goods and services. b. have been a negative number in the last several years. c. would include purchases of U.S.-made automobiles by foreigners minus purchase of foreign-made automobiles by U.S. residents. d. All of the above are correct.
In a two-commodity world, balanced growth in a country decreases its willingness to trade because the country becomes self-sufficient in the production of both the goods.
Answer the following statement true (T) or false (F)
Which of the following is not an obstacle to development?
A. Overpopulation B. Excessive investment C. Political instability D. Corruption
What is the relationship between accounting and economic profits?
A. Economic profits are always negative. B. Accounting profits are always larger than economic profits. C. There is no relationship between economic and accounting profits. D. Economic profits are always larger than accounting profits.