Costs Incurred by the Producer to Buy or Hire Resources

question 44

Multiple Choice

Costs incurred by the producer to buy or hire resources are called

• A)Implicit costs
• B)Explicit costs
• C)Opportunity costs
• D)Total costs
• E)Marginal costs

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Definitions:

Budget Line

A visual depiction of every combination of two items that a person can purchase, based on their earnings and the costs of these products.

Good X

A placeholder term often used in economics to denote a specific, but unspecified, commodity or product in theoretical discussions.

Good Y

A placeholder term often used in economics to denote a specific good or product under consideration in a model or theory.

Food Stamps

A government assistance program providing electronic benefits to low-income individuals and families for the purchase of food.