Economic costs
A. include both a normal rate of return on investment and the opportunity cost of each factor of production.
B. are the opportunity cost of each factor of production minus any interest charges paid on borrowed funds.
C. are equal to the direct costs of hiring all factors of production.
D. are equal to total revenue minus accounting profit.
Answer: A
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If investment per-worker equals some value X, and depreciation per-worker equals some value Z, then the change in the capital stock per-worker is equal to ________
A) X+Z B) X-Z C) X times Z D) X divided by Z
____ is used in repeated games such that one player follows the other player's move in the previous round, leading to ____ cooperation
a. Bandwagon effect; greater b. Bandwagon effect; lesser c. Tit-for-tat strategy; greater d. Tit-for-tat strategy; lesser
If a curve rises and then falls, it shows a
A) maximum. B) minimum. C) linear relationship. D) constant slope relationship.
The figure above shows the production possibilities frontier for a country. How does the opportunity cost of compact cars forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?
A) The opportunity cost of moving from point C to point B is greater than the movement from point B to point A. B) The opportunity cost of moving from point C to point B is less than the movement from point B to point A. C) The opportunity cost of moving from point C to point B is the same as the movement from point B to point A. D) The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A. E) More information is needed to determine how the two opportunity costs compare.