What Would Be an Example of an Explicit Cost of Production

question 102

Multiple Choice

What would be an example of an explicit cost of production

• A)the cost of forgone labour earnings for an entrepreneur
• B)the cost of the lost opportunity to invest in other capital markets when the money is invested in one's business
• C)the cost of gas for a long haul truck driver
• D)the cost of training programs postponed indefinitely

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Definitions:

Mortgages

A type of loan specifically used for the purchase of real estate, where the property itself serves as collateral against the borrowed funds.

Consumer Credit

A form of credit extended to consumers to finance the purchase of goods or services, often associated with personal loans, credit cards, and lines of credit.

Productive Capacity

The maximum output a business, industry, or economy can produce using all available resources efficiently.

Material Wealth

The quantifiable fiscal assets and possessions owned by an individual or entity, often used as a measure of economic status.