Which of the Following Is an Implicit Cost of Production

question 56

Multiple Choice

Which of the following is an implicit cost of production?

• A)the loss in the value of capital equipment due to wear and tear
• B)the salary you pay yourself for running your business
• C)the utility bill paid to water, electricity, and natural gas companies
• D)the interest you pay your mother for the money she loaned you to start your business

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Definitions:

Form 1040

The standard IRS form that individuals use to file their annual income tax returns.

Household Workers

Individuals employed within a private home to perform domestic tasks, such as cleaning, cooking, and childcare.

Quarterly 941 Return

A quarterly tax form employers file to report federal withholdings and Social Security and Medicare taxes for employees.

Annual 940 Return

The Annual 940 Return is a federal tax form used by employers to report their annual Federal Unemployment Tax Act (FUTA) tax.