When Economists Refer to a Production Cost That Has Already

question 116

Multiple Choice

When economists refer to a production cost that has already been committed and cannot be recovered, they use the term

• A)implicit cost.
• B)explicit cost.
• C)variable cost.
• D)sunk cost.

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Definitions:

Efficiency

The ability to achieve a goal or complete a task with minimum waste of time, effort, and resources.

15 Percent

A figure that typically represents a portion, fraction, or rate equating to fifteen out of every hundred or 15% of a total.

Meta-Communication

Communication about communication, which includes the underlying messages, context, and cues beyond the literal meaning of words.

Hidden Assumptions

Hidden assumptions are unspoken or unconscious beliefs that underpin our thoughts, decisions, and actions, affecting our perceptions and understandings without us being aware.