Which of the following statements is true?
A) Explicit costs are accounting costs, not economic costs; implicit costs are economic costs, not accounting costs.
B) Economic costs include both explicit costs and implicit costs.
C) An explicit cost is an actual cost; an implicit cost is a theoretical cost.
D) An explicit cost is more important, dollar for dollar, than an implicit cost.
B
You might also like to view...
Refer to the figure above. What does the region ABDC indicate?
A) Economic profit B) Loss incurred by the producer C) Consumer surplus D) Deadweight loss
The Federal Reserve appears to tighten monetary policy after a trough __________ it eases policy after a peak in the business cycle
A) sooner than B) after about the same length of time as C) later than D) no sooner or later than
Explain the difference between human needs and wants
What will be an ideal response?
According to the classical view,
a. velocity is constant, which means changes in price will cause changes in price or quantity. b. quantity is constant, which means changes in the money supply could cause either changes in velocity or changes in prices. c. velocity and price are constant so that changes in the money supply causes changes in quantity. d. velocity and quantity are constant so that changes in the money supply cause changes in prices. e. velocity is constant while quantity is variable so that changes in the money supply change both price and quantity.