Which of the Following Is an Implicit Cost of Production

question 56

Multiple Choice

Which of the following is an implicit cost of production?

• A)the loss in the value of capital equipment due to wear and tear
• B)the salary you pay yourself for running your business
• C)the utility bill paid to water, electricity, and natural gas companies
• D)the interest you pay your mother for the money she loaned you to start your business

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Definitions:

Economic Behaviorists

Scholars or researchers who study how psychological and emotional factors affect the economic decisions of individuals or institutions.

Supply Side Economists

Economists who believe in the effectiveness of policies that focus on boosting output and economic growth by increasing the supply of goods and services, often through tax cuts and deregulation.

Classical Economists

Economists from the 18th and 19th centuries who focused on the idea that free markets regulate themselves through the laws of supply and demand.

Monetarists

Economists who emphasize the role of governments in controlling the amount of money in circulation as a primary method for stabilizing the economy.