One Difference Between Implicit Costs and Explicit Costs Is That

question 83

Multiple Choice

One difference between implicit costs and explicit costs is that:

• A) implicit costs are included in profits that accountants compute, whereas explicit costs are not.
• B) implicit costs are included in economic profits, whereas explicit costs are not.
• C) explicit costs are included in profits that accountants compute, whereas implicit costs are not.
• D) explicit costs are included in economic profits, whereas implicit costs are not.
• E) explicit costs involve opportunity costs, whereas implicit costs involve a monetary transaction.

Understand the components included in the factor of production, capital.

Comprehend how changes in wealth and wages affect labor supply curves.

Identify factors that do not shift the labor supply curve.

Understand the concept of substitution and income effects in the context of labor supply.

---

Definitions:

Reproduction

The biological process by which new individual organisms are produced, either asexually from a single parent organism or sexually from two parent organisms.

Puberty

The phase of human development during which children mature sexually and become capable of reproduction.

Sexual Maturity

The developmental stage where an individual has achieved the ability to reproduce and exhibit secondary sexual characteristics.

Adolescents

Individuals in the transitional stage of development between childhood and adulthood, typically ranging from ages 10 to 19.