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The Following Questions Refer to the Excerpt Below

question 43

Multiple Choice

The following questions refer to the excerpt below.
"I told him I thought that every man,when he was free,could have his rights and protect [himself].He said,"The colored people could never protect themselves among the white people.So you had all better stay with the white people who raised you and make contracts with them to work by the year for one-fifth of all you make.And next year you can get one-third,and the next you maybe work for one-half you make.We have contracts for you all to sign,to work for one-twentieth you make from now until the crop is ended,and then next year you all can make another crop and get more of it.""
Senate Report 693,46th Congress,2nd Session,1880
-The economic system described in the excerpt above is known as

Definitions:

Implicit Costs

The opportunity costs of resources that are owned by the firm and used in production, not involving direct payment of money but affecting the firm's profitability.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.

Accounting Profits

The net earnings of a company as calculated by subtracting total expenses from gross revenue, according to accepted accounting principles.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, reflecting the financial gain exceeding the opportunity cost of resources used.