Which of the Following Statements Is True

question 248

Multiple Choice

Which of the following statements is true?

• A)An explicit cost is an actual cost; an implicit cost is a theoretical cost.
• B)Economic costs include both explicit costs and implicit costs.
• C)An explicit cost is more important, dollar for dollar, than an implicit cost.
• D)Explicit costs are accounting costs, not economic costs; implicit costs are economic costs, not accounting costs.

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Definitions:

Restrictive Trade

Practices that limit competition within a market, often through regulations or agreements that control and reduce the level of trade.

Favourable Treatment

Preferential treatment or advantage given to a person or group over others.

Protectionism

Economic policy measures implemented by a government to shield domestic industries from foreign competition, often through tariffs and quotas.

Cultural Miscues

Misunderstandings or errors in communication that occur due to differences in cultural norms and expectations.