Which of the Following Statements Is Incorrect

question 93

Multiple Choice

Which of the following statements is incorrect?

• A)A firmʹs total economic cost is at least as large as the firmʹs total accounting cost.
• B)A firmʹs total economic cost includes both explicit cost and implicit cost of the firm.
• C)A firmʹs implicit cost is the opportunity cost of non-purchased inputs.
• D)A firmʹs total accounting cost is at least as large as the firmʹs implicit cost.

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Definitions:

American Trade Deficit

occurs when the total amount of goods and services the United States imports exceeds the amount it exports, leading to a net outflow of domestic currency to foreign markets.

Foreign Exchange Rate

The price of one currency in terms of another.

Exchange Rate

The value of one currency for the purpose of conversion to another.

Gold Standard

A monetary system in which a country's currency or paper money has a value directly linked to gold, providing stability and confidence in the currency's value.