Which of the Following Are Correct Statements About Implicit and Explicit

question 63

Multiple Choice

Which of the following are correct statements about implicit and explicit costs? i. Normal profit is an implicit cost.
Ii) Economic depreciation is an explicit cost.
Iii) Wages are an explicit cost.

• A) i and iii
• B) ii and iii
• C) i, ii and iii
• D) iii only
• E) i only

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Definitions:

Attribution Theory

is a psychological theory focused on how individuals interpret events and how this relates to their thinking and behavior, particularly how they assign causality to events and actions.

Declining Economy

A period marked by a decrease in economic activity, leading to lower GDP growth, employment, and spending.

Expectation Theory

Expectation Theory, often related to motivation, suggests that individuals are motivated to act in a certain way based on their expectations of the outcome.

Procrastinate

The act of delaying or postponing tasks or decisions, often unnecessarily.