____ Include(s) Points, Loan Application Fees, or Any Other Fee

question 87

Multiple Choice

____ include(s) points, loan application fees, or any other fee that the borrower must pay up front.

• A) Mortgage loans
• B) Mortgage interest
• C) Upfront interest
• D) none of the above

---

Definitions:

Implicit Costs

The firm’s opportunity costs of using resources owned or provided by the owner.

Explicit Costs

Dollar costs incurred by business firms, such as wages, rent, and interest.

Implicit Costs

The opportunity costs that are not directly incurred but represent the loss of alternative benefits when choosing one option over another.

Explicit Costs

Direct, out-of-pocket payments for goods and services required to run a business.