When an Economist Uses the Term "Cost" Referring to a Firm,the

question 28

Multiple Choice

When an economist uses the term "cost" referring to a firm,the economist refers to the

• A) price of the good to the consumer.
• B) explicit cost of producing a good or service but not the implicit cost of producing a good or service.
• C) implicit cost of producing a good or service but not the explicit cost of producing a good or service.
• D) opportunity cost of producing a good or service, which includes both implicit and explicit cost.
• E) cost that can be actually verified and measured.

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Definitions:

Average Intelligence

The level of cognitive ability or IQ that is considered to be in the middle range of the population.

Predicts

The act of forecasting future events or conditions based on current or past data, patterns, or observations.

Validity

The extent to which a test measures or predicts what it is supposed to.

G Factor

A concept in psychology that refers to the general intelligence factor believed to underlie all cognitive abilities.