There Are Two Types of Costs Associated with Production: ____

question 109

Multiple Choice

There are two types of costs associated with production: ____ costs that require monetary payments, and ____ costs that do not.

• A)implicit; accounting
• B)accounting; explicit
• C)implicit; explicit
• D)explicit; implicit
• E)accounting; economic

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Definitions:

Government Central Planning

A system where the government makes all decisions on the production and distribution of goods and services.

Centrally Planned

An economic system where major decisions regarding production, distribution, and investment are made by the government or a central authority.

Socialist Economy

An economic system in which the means of production, distribution, and exchange are owned or regulated by the community as a whole, with an aim toward equitable distribution of wealth and resources.

Norway

A Nordic country in Northern Europe known for its advanced economy, high quality of life, and robust welfare system.