Darryl runs a ranch in Jackson, Wyoming. The interest on the debt he incurred to buy his ranch totals $3,000 per year. For Darryl, the interest is
A) an implicit cost.
B) an explicit cost.
C) his normal cost.
D) his normal profit.
E) part of his economic profit.
B
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If you computed nominal GDP every year over a decade, which is fixed or held constant over these years?
A. prices B. quantities C. neither prices nor quantities
Economic profit is the best measure of a firm's performance because
A. economic profit fully accounts for all sources of revenue. B. the opportunity cost of using ALL resources is subtracted from total revenue. C. normal profit is generally too difficult to measure. D. only explicit costs influence managerial decisions since, in general, only explicit costs can be subtracted from revenue for the purposes of computing taxable profit.
A nation can accelerate its economic growth by:
A. reducing the number of immigrants allowed into the country. B. adding to its stock of capital. C. printing more money. D. imposing tariffs and quotas on imported goods.
lloyd of London has a reputation for insuring:
A. unique and sometimes very odd situations. B. only marine-related risks. C. only physical structures to minimize the risks to their underwriters. D. only low risk stable enterprises.