Economists Consider Both Explicit Costs and Implicit Costs When Measuring

question 25

Multiple Choice

Economists consider both explicit costs 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:

Haploid Cell

A cell that contains a single set of chromosomes, half the diploid number, typical of gametes.

Gametes

Reproductive cells that unite during sexual reproduction to form a new organism.

Diploid Zygote

The cell formed when two haploid gametes (from each parent) merge during fertilization, containing two complete sets of chromosomes, one from each parent.

Fungi

A realm comprised of organisms that create spores and derive nutrition from organic substances, encompassing molds, yeast, mushroom species, and toadstools.