The Debate Over the Causes of Recessions in the U

question 83

Multiple Choice

The debate over the causes of recessions in the U.S. in recent years has included arguments about:

• A) monetary policy, but not higher oil prices.
• B) decreases in exports.
• C) higher oil prices, but not monetary policy.
• D) both monetary policy and higher oil prices.

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production instead of earning revenue from these resources elsewhere.

Explicit Costs

These are the direct, out-of-pocket payments made by businesses for operational expenses like wages, rent, and materials.

Monetary Outlay

The amount of money spent on a particular transaction or investment.

Implicit Costs

The opportunity costs that arise when a company uses internal resources without a direct payment.