When a Business Has Implicit Costs

question 377

Multiple Choice

When a business has implicit costs

• A) economic profits are greater than accounting profits.
• B) economic and accounting profits are the same.
• C) economic profits are less than accounting profits.
• D) economic costs are the same as accounting costs.

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Definitions:

Discrimination

In psychology, the ability to distinguish between different stimuli and respond appropriately according to their differences.

Modeling Effect

Learning a new behavior from a model through the acquisition of new responses.

Disinhibitory Effect

Describes the phenomenon where observing a model being rewarded for a prohibited or inhibited behavior increases the likelihood of the observer engaging in that behavior.

Classical Conditioning

A habituation procedure where two stimuli are paired frequently, and a reaction that initially occurs because of the second stimulus subsequently occurs due to the first stimulus exclusively.