Which of the Following Is an Example of an Implicit

question 160

Multiple Choice

Which of the following is an example of an implicit cost a firm might incur?

• A)the wages paid to employees
• B)the payment for medical insurance coverage
• C)the opportunity cost to investors of the funds invested in the firm
• D)utility payments

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Definitions:

Semi-strong Form Efficiency

A theory in financial economics that implies all public information is already calculated into stock prices, meaning future price movements cannot be predicted using only public information.

Financial Markets

Financial markets are marketplaces where individuals and entities can trade securities, commodities, and other financial instruments in order to facilitate funding, investing, and risk management.

Advantage

The benefit or edge that a person, organization, or situation has over another.

Future Outlook

An estimate or forecast of a future situation or trend based on current data or trends.