Implicit Costs

question 52

Multiple Choice

Implicit costs

• A) Include only payments to labor.
• B) Are the sum of actual monetary payments made for resources used to produce a good.
• C) Include the value of all resources used to produce a good.
• D) Are the value of resources used to produce a good but for which no monetary payment is made. Implicit costs are the value of resources used, even when no direct payment is made.

---

Definitions:

Monetary Policy

A strategy implemented by a country's central bank to control the money supply, often targeting inflation or interest rates to promote economic stability and growth.

Phillips Curve Relationship

This relationship indicates an inverse correlation between unemployment rates and inflation, suggesting that lower unemployment leads to higher inflation and vice versa.

Economists

Professionals who study the production, distribution, and consumption of goods and services, often analyzing economic issues and trends.

Trade-offs

The evaluation and choice between competing alternatives in situations where having one benefit often means giving up another.