Which of the Following Statements Is True

question 112

Multiple Choice

Which of the following statements is true?

• A)Explicit costs always equal implicit costs.
• B)Zero economic profit is a smaller dollar figure than normal profit.
• C)Zero economic profit is a larger dollar figure than normal profit.
• D)Saying that a firm earned zero economic profit is the same as saying it earned normal profit.
• E)none of the above

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Definitions:

WTO

The World Trade Organization, an international body that regulates international trade agreements and aims to ensure smooth, free, and predictable trade flows.

Exploitation

The unfair use of someone's work or resources, often without proper compensation or regard for their wellbeing.

Foreign Direct Investment

A company or individual from one country putting money into business interests in another nation, either by setting up business operations or by purchasing business assets.

Export Processing Zones

Special areas within countries where imported materials undergo processing or manufacturing before being exported again, typically benefiting from incentives like tax exemptions.