Considering the Roughly $1

question 88

Multiple Choice

Considering the roughly $1.35 trillion in U.S. currency held by the public:

• A) over 90% of the amount is held in the form of $1 bills.
• B) more than three-fourths is held in the form of $100 bills.
• C) over half of the currency held in the form of $20 bills.
• D) the Federal Reserve distributes the amount equally across all denominations of bills.

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Definitions:

Implicit Costs

They represent the opportunity costs of using resources that a company already owns, rather than the out-of-pocket expenses.

Economic Costs

The total cost of production, including both explicit costs like wages and materials and implicit costs such as opportunity costs.

Accounting Profit

The total revenue of a business minus the explicit costs associated with that revenue, calculated using generally accepted accounting principles (GAAP).

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to changes.