Economic Cost

question 32

Multiple Choice

Economic cost

• A)Includes both implicit and explicit costs.
• B)Is the sum of actual monetary payments made for resources used to produce a good.
• C)Includes only implicit costs.

---

Definitions:

Federal Reserve Bank

The central banking system of the United States, responsible for setting monetary policy, issuing currency, and regulating financial institutions.

Money Supply

The sum total of all monetary assets within an economy, accounting for cash, coins, and checking and savings accounts' balances, at a specific instant.

United States Treasury

A government department responsible for managing federal finances, issuing currency, collecting taxes, and paying bills on behalf of the United States government.

Primary Reserves

Assets that are held by banks that are readily available to meet immediate withdrawal demands, such as cash and deposits with central banks.