Economic Costs

question 190

Multiple Choice

Economic costs

• A) include both a normal rate of return on investment and the opportunity cost of each factor of production.
• B) are equal to the direct costs of hiring all factors of production.
• C) are the opportunity cost of each factor of production minus any interest charges paid on borrowed funds.
• D) are equal to total revenue minus accounting profit.

---

Definitions:

Cash Dividend

A cash dividend refers to a distribution of a company's earnings to its shareholders as cash.

Total Liabilities

The combined financial obligations or debts a company owes to external parties.

Financing Activities

Transactions and events where cash is raised for the purpose of running the business, acquiring assets, or returning value to shareholders.