Personal Estimates of the Probability of Uncertain Events Are Called

question 7

Multiple Choice

Personal estimates of the probability of uncertain events are called __________; mathematically determined statements about the likelihood of events with known frequencies are called __________.

• A) mutual outcomes…..joint outcomes
• B) conditional outcomes…..joint outcomes
• C) subjective probabilities…..objective probabilities
• D) objective probabilities…..subjective probabilities
• E) None of the above

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Definitions:

Average-fixed-cost Curve

A graphical representation showing how the average fixed cost of production decreases as the quantity of output increases.

Implicit Costs

The opportunity costs of using resources owned by the business for its operations instead of allocating them to their best alternative use.

Interest Rate

The expense associated with taking out a loan or the earnings from investments, usually shown as a percent of the total amount invested or borrowed.

Specialization

The process of focusing effort and resources on a limited number of activities to gain efficiency or expertise.