Economists Consider Both Explicit and Implicit Costs When Measuring Economic

question 100

Multiple Choice

Economists consider both explicit and implicit costs when measuring economic profit. The reason they consider implicit costs is that:

• A) they are more conservative than accountants, who consider only accounting costs.
• B) most businesses forget to pay their implicit costs.
• C) a business must cover its opportunity costs as well as its out-of-pocket expenses to be truly profitable.
• D) implicit costs are typically far larger than explicit costs.
• E) implicit costs include expenses like taxes and fees to the government.

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Definitions:

Deculturation

The process of losing or diminishing certain aspects of one's original culture, often as a result of contact with another culture.

Assimilation

The process by which individuals or groups adopt the culture, attitudes, and norms of another group, often losing aspects of their original identity.

Separation

The act of dividing or distinguishing elements from one another in various contexts, such as physical, emotional, or organizational separation.

Integration

The process of combining or coordinating separate elements or groups to function together as a unified whole.