Which of the Following Is Most Likely to Be an Implicit

question 119

Multiple Choice

Which of the following is most likely to be an implicit cost of production?

• A) the "competitive rate" salary the owner of the business pays herself for services provided
• B) the property taxes on a building owned by the firm
• C) the rental income foregone because the business owns its building
• D) the interest paid on outstanding loans of the business

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Definitions:

Actor-Observer Effect

A cognitive bias in which people tend to attribute their own actions to external circumstances but attribute others' actions to their personalities or character.

Primacy Effect

The tendency to remember the first pieces of information in a series better than the information in the middle.

Computer Programming

The process of designing, writing, testing, debugging, and maintaining the source code of computer programs.

Defensive Attribution

A theory suggesting that people attribute unforeseeable actions either to the victim or the perpetrator, in an effort to distance themselves from the possibility of experiencing a similar event.