Suppose Eastland College Does Not Have a Summer Program and Could

question 81

Multiple Choice

Suppose Eastland College does not have a summer program and could rent out the campus to various summer sports camps for $100,000. The potential revenue of the summer camps represents:

• A) an implicit cost of capital.
• B) an explicit cost.
• C) a total cost.
• D) a sunk cost.

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Definitions:

Gross Income

The total revenue generated from a business's activities before any expenses or taxes are deducted.

Disposable Income

The sum of money families can use for expenditures and savings once income taxes are deducted.

Necessities

Fundamental needs required for sustaining human life, such as food, water, shelter, and clothing.

Economic Activity

Any action that involves the production, distribution, and consumption of goods and services at all levels within a society.