Which of the Following Is an Explicit Cost

question 222

Multiple Choice

Which of the following is an explicit cost?

• A) The opportunity cost of an owner/entrepreneur's time invested in the firm.
• B) The opportunity cost of the money the business owner/entrepreneur has invested in the firm.
• C) The wages paid to workers.
• D) None of the above.

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Definitions:

John Astor

John Jacob Astor was an American businessman, real estate builder, investor, and at one time the wealthiest person in the United States, known for amassing his fortune in fur trade and by investing in New York City real estate.

Jay's Treaty

An agreement in 1794 between the United States and Great Britain that sought to resolve issues remaining after the American Revolution and facilitate ten years of peaceful trade between the two countries.

Treaty Of Ghent

The agreement that ended the War of 1812 between the United States and Britain, signed in Ghent, Belgium, in 1814.

Fur Business

An industry involved in the buying, selling, and trading of animal fur for the production of fashion and clothing, historically significant in the economic development of North America and Europe.