A Difference Between Explicit and Implicit Costs Is That

question 159

Multiple Choice

A difference between explicit and implicit costs is that

• A) explicit costs are greater than implicit costs.
• B) explicit costs do not require a direct monetary outlay by the firm,whereas implicit costs do.
• C) implicit costs do not require a direct monetary outlay by the firm,whereas explicit costs do.
• D) implicit costs are greater than explicit costs.

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Definitions:

Schachter Two-factor Theories

A psychological perspective that emotional experience arises from physiological arousal and cognitive labeling of the reason for this arousal.

Autonomic Activation

The stimulation of the autonomic nervous system, which controls involuntary bodily functions and responses to stress.

Schachter Two-factor Theory

A theory suggesting that emotions are determined by physiological arousal and the cognitive interpretation of that arousal.

Common Sense Theory

The belief that perceptions or beliefs deemed as "common sense" are inherently true or valid.