Which of the Following Is True About Explicit Costs

question 153

Multiple Choice

Which of the following is true about explicit costs?

• A) They are the opportunity costs of production.
• B) They are out-of-pocket expenses.
• C) They are not measured in terms of dollars.
• D) They are not included when measuring economic profit.
• E) They are not included when measuring accounting profit.

---

Definitions:

Stimulus Package

A package of economic measures put together by a government to stimulate a struggling economy, typically including tax cuts, spending increases, and monetary policy adjustments.

High-Income Households

Families or individuals with earnings significantly above the average for a given area, often associated with higher consumption and investment capacities.

Stimulus Program

A government initiative designed to stimulate economic growth during a recession by increasing public spending or cutting taxes.

Tax Multipliers

Measures the impact of changes in taxes on the overall economic output, indicating how tax changes affect GDP.