Unlike implicit costs, explicit costs
a. reflect opportunity costs
b. include the value of the owner's time
c. are not included in a firm's accounting statements
d. are actual cash payments
e. do not change as a firm's output changes
D
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In the short run, a fiscal policy action that results in a reduction in the size of the budget deficit will cause
A) a reduction in real GDP with falling prices if the economy was below or at full employment. B) an inflationary gap if the economy was initially operating below full employment. C) an inflationary gap if the economy was initially operating at full employment. D) an increase in real GDP with stable prices if the economy was below full employment.
As income rises, the share of income spent on food in the United States
A) falls. B) remains constant at 15 percent. C) remains constant at 33 percent. D) rises.
The difference between what you pay for some good or service and what you would have been willing to pay is called ________________________.
Fill in the blank(s) with the appropriate word(s).
John Maynard Keynes' most notable published work is entitled
A. Capitalism Doomed. B. The Communist Manifesto. C. Freakonomics. D. The General Theory of Employment, Interest, and Money.