Based on the Results of the Army Testing Project, Psychologists

question 21

True/False

Based on the results of the Army Testing Project, psychologists could keep a serviceman off the battlefield simply because his IQ was high.

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Definitions:

Economic Profits

The excess of total revenue over total costs, including both implicit and explicit costs.

Implicit Costs

Costs that represent the opportunity cost of using resources that are not directly paid for, such as the owner’s time or the use of assets owned by the firm.

Explicit Costs

Direct, out-of-pocket payments for resources or services used in the production process.

Accounting Profits

Represents the difference between total revenue and explicit costs of a firm.