Implicit Costs

question 293

Multiple Choice

Implicit costs

• A)do not require an outlay of money by the firm.
• B)do not enter into the economist's measurement of a firm's profit.
• C)are also known as variable costs.
• D)are not part of an economist's measurement of opportunity cost.

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Definitions:

Federal Reserve District Banks

The 12 regional banks that make up the Federal Reserve System of the United States, each serving a specific geographic area.

Securities

Financial instruments that represent an ownership position in publicly-traded corporations (stocks), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.

Bond Prices

are the market value of bonds, which inversely correlate with interest rates; when rates go up, bond prices typically go down, and vice versa.

Interest Rates

The proportion of a total amount of money that is levied for its utilization, typically stated on a yearly basis.