To the economist, total cost includes:
A. explicit and implicit costs, including a normal profit.
B. implicit, but not explicit, costs.
C. neither implicit nor explicit costs.
D. explicit, but not implicit, costs.
Answer: A
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Which of the following is NOT a common characteristic of a developing country?
A) extensive direct government control of the economy B) history of low inflation C) many weak credit institutions D) "pegged" exchange rates E) Agricultural commodities make up a large share of its exports.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.
Economists are strongly united in their belief that the stock market is
A. risk neutral. B. an unfair gamble. C. efficient. D. inefficient.
One of the main purposes of the Fed's reserve requirements is to
A. provide cash flow for business firms. B. provide sources for foreign exchange. C. provide sources for foreign investments. D. regulate the lending ability of member banks.