Expenses that a firm does NOT have to pay out of pocket are
A. taxes.
B. wages of employees.
C. explicit costs.
D. implicit costs.
Answer: D
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As applied to voter behavior, the "rational ignorance" hypothesis claims
A) voters will have no incentive to be informed of political issues. B) voters will stop gathering information once the marginal costs exceed the marginal benefits. C) voters only vote on the basis of their instinctual or gut feelings. D) voters are selfish.
Sam is responsible for ordering office supplies for the firm gets a bonus if the firm stays well-stocked at all times. The bonus implies he is more likely to
a. Pay lower prices for the supplies b. Pay higher prices for the supplies c. Have more stock outs d. Resign from the position
Which of the following will not increase aggregate expenditures?
a. A decrease in domestic prices b. A decrease in the interest rate c. An increase in real wealth d. An increase in income taxes e. An increase in autonomous net exports
Suppose that consumer income increases and that ground meat is an inferior good. Which of the following will occur in the market for ground meat?
A. Market clearing price will fall, and equilibrium quantity will rise. B. Market clearing price will fall, and equilibrium quantity will fall. C. Market clearing price will rise, and equilibrium quantity will fall. D. Market clearing price will rise, and equilibrium quantity will rise.