Which of the Following Is True About Explicit Costs

question 153

Multiple Choice

Which of the following is true about explicit costs?

• A) They are the opportunity costs of production.
• B) They are out-of-pocket expenses.
• C) They are not measured in terms of dollars.
• D) They are not included when measuring economic profit.
• E) They are not included when measuring accounting profit.

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Definitions:

Mere Exposure Effect

The tendency among humans to prefer things that are familiar to them is a notable psychological behavior.

Reciprocity Norm

A social norm that dictates that we should treat others as they treat us, fostering mutual aid and cooperation.

Ethnic Groups

Communities or populations sharing common cultural traits, ancestry, language, history, and often a shared sense of identity.

Nationalities

are the distinct ethnic, cultural, or national identities that people belong to, often associated with being a citizen of a particular nation.