Which of the Following Statements About the Relationship Between Economic

question 65

Multiple Choice

Which of the following statements about the relationship between economic costs and accounting costs is true?

• A)Accounting costs are always less than or equal to economic costs.
• B)Accounting costs must always equal economic costs.
• C)Accounting costs are always greater than economic costs.

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Definitions:

Employer

An individual or organization that hires and pays individuals for their labor or services.

FICA

Federal Insurance Contributions Act; a U.S. law that requires a payroll tax on both employees and employers to fund Social Security and Medicare.

Social Security

A government program providing economic assistance to people with an inadequate or no income.

Yellow-Dog Contracts

A type of employment agreement where the worker promises not to join a labor union during the term of employment.