Which of the Following Is an Explicit Cost

question 222

Multiple Choice

Which of the following is an explicit cost?

• A) The opportunity cost of an owner/entrepreneur's time invested in the firm.
• B) The opportunity cost of the money the business owner/entrepreneur has invested in the firm.
• C) The wages paid to workers.
• D) None of the above.

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Definitions:

Foreign Assets

Investments or properties owned by individuals, companies, or governments in countries other than their own.

Trade Balance

The difference in value between a country's imports and exports over a certain period, indicating the relative strength of its economy.

Net Capital Outflow

The sum representing a country's outbound investments minus its inbound investments from abroad over a specific period.

Investment

The allocation of resources, such as capital or time, in expectation of future benefit or profit.