Charges That Must Be Paid for the Use of Factors

question 220

Multiple Choice

Charges that must be paid for the use of factors of production such as labor and capital, together with estimated depreciation costs, are:

• A) explicit costs.
• B) accounting profits.
• C) implicit costs.
• D) economic profits.

---

Definitions:

Deductible

An amount that must be paid out of pocket before an insurer will cover any expenses.

Assessed Valuation

A property value determined by a representative of the local or state government.

Taxation

The process by which governments finance their expenditure by imposing charges on citizens and corporate entities.

Tax Rate

The percent used to calculate a tax.