John Moved His Office from a Building He Was Renting

question 26

Multiple Choice

John moved his office from a building he was renting downtown to the carriage house he owns in back of his house.How will his costs change?

• A)explicit and implicit costs rise
• B)explicit costs rise; implicit costs fall
• C)explicit and implicit costs fall
• D)explicit costs fall; implicit costs rise
• E)not enough information is given

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Definitions:

Voluntary Organizations

Groups or associations that operate without governmental influence, formed freely by individuals to pursue shared goals or interests.

Conspiracy Doctrine

A legal principle historically used to treat collective action by workers, such as organizing or striking, as a criminal conspiracy.

Free Market System

An economic system based on supply and demand with little or no government control, where prices for goods and services are determined in a free price system.

Illegal Conspiracy

An unlawful plan by two or more parties to commit a criminal act or to achieve an illegal end.