Which of the Following Is an Example of an Implicit

question 149

Multiple Choice

Which of the following is an example of an implicit cost that a firm might incur?

• A)the out-of-pocket expense to hire resources
• B)taxes owed to the state and Federal governments
• C)the rental value of the office space the company owns and uses for itself
• D)the revenue a firm generates in using its resources

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Definitions:

Prohibition

The period from 1920 to 1933 in the United States when the manufacture, sale, and transportation of alcoholic beverages were banned by constitutional amendment.

Equal Rights Amendment

A proposed amendment to the U.S. Constitution aiming to guarantee equal legal rights for all American citizens regardless of sex, which has not been ratified.

Wage Gap

The disparity in earnings between different groups, often highlighted between genders or races for similar work and qualifications.