Which of the Following Is Most Likely to Be an Implicit

question 119

Multiple Choice

Which of the following is most likely to be an implicit cost of production?

• A) the "competitive rate" salary the owner of the business pays herself for services provided
• B) the property taxes on a building owned by the firm
• C) the rental income foregone because the business owns its building
• D) the interest paid on outstanding loans of the business

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Definitions:

Preoperational Children

Describes children in Piaget's stage of cognitive development, typically aged 2-7, characterized by symbolic thinking and difficulty understanding other perspectives.

Three-mountain Test

A cognitive development test designed by Jean Piaget to assess a child's ability to understand perspectives different from their own.

Reversibility

According to Piaget, recognition that processes can be undone, leaving things as they were before. Reversibility is a factor in conservation of the properties of substances.

Hypothetical Thinking

The cognitive ability to consider possibilities, imagine outcomes, and think about events or conditions that are not yet real or present.