Which of the Following Statements Is FALSE

question 400

Multiple Choice

Which of the following statements is FALSE?

• A) A correct measure of a firm's economic cost includes both accounting and opportunity cost.
• B) The accounting profit earned by a firm will always be less than its economic profit.
• C) The major difference between accounting and economic profit is that accounting profit does not reflect the opportunity cost of using resources.
• D) The accounting profit of a firm is its total revenue minus total explicit costs.

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Definitions:

Social Problems

Issues within a society that are recognized by a significant number of people as contrary to their values.

Choice Overload

A cognitive process in which people struggle to make a decision when faced with many options, potentially leading to decision fatigue.

Postdecision Regret

The feeling of remorse or guilt that occurs after making a decision, particularly if the outcome is negative or not as expected.

Mental Resources

The cognitive and emotional capabilities that an individual can draw upon to handle tasks, stress, and demands in life.