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:

Rational Psychological Functions

Cognitive activities employed by an individual to perceive and interpret information in a logical and reasoned manner.

Imagining

The action of forming new ideas, images, or concepts of external objects not present to the senses.

Intuiting

The process of understanding or knowing something immediately without conscious reasoning.

Anima And Animus

Jungian theory terms for the unconscious feminine side in men (anima) and the unconscious masculine side in women (animus).