When an Economist Uses the Term 'Cost' Referring to a Firm

question 37

Multiple Choice

When an economist uses the term 'cost' referring to a firm, the economist refers to the

• A) implicit cost of producing a good or service, but not the explicit cost of producing a good or service.
• B) explicit cost of producing a good or service, but not the implicit cost of producing a good or service.
• C) opportunity cost of producing a good or service, which includes both implicit and explicit cost.
• D) price of the good to the consumer.
• E) cost that can be actually verified and measured.

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Definitions:

Intelligence

The ability to acquire, understand, and use knowledge effectively, including the capacity for logic, reasoning, problem solving, and learning.

Triarchic Theory

A theory of intelligence proposed by Robert Sternberg, which suggests that human intelligence comprises three aspects: analytical, creative, and practical intelligence.

Sternberg

Refers to Robert Sternberg, an American psychologist who proposed the triarchic theory of intelligence which includes analytical, creative, and practical aspects.

Intelligence

The ability to acquire, understand, and use knowledge, including the capacity for logic, understanding, self-awareness, learning, emotional knowledge, planning, creativity, and problem-solving.