Which of the following is an example of something that economists would consider a cost but accountants would not?
A. the wages paid to employees of a firm
B. the wages that the owner of a firm could have earned in some alternative job
C. rent paid to a business's landlord
D. the cost of leather used in the production of footballs
Answer: B
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The textbook discusses the carpet industry situated in the southeastern U.S., and the authors indicate that smaller carpet mills have ________ returns to scale while larger mills have ________ returns to scale
A) increasing, decreasing B) increasing, constant C) constant, decreasing D) constant, increasing
Money's basic advantage as compared to barter is that
A) everybody has money but not everyone has the opportunity to barter. B) a money system relies on a double coincidence of wants. C) money reduces transaction costs. D) money is the only medium you can use to store your wealth.
According to economic reasoning, you should follow Nike's advice and "Just Do It" when
What will be an ideal response?
According to the classical economists, if there were substantial unemployment, there would be a fall in _____, _____, and _____.
Fill in the blank(s) with the appropriate word(s).