Which of the Following Is an Example of an Implicit

question 259

Multiple Choice

Which of the following is an example of an implicit cost?

• A) wages paid to employees
• B) interest paid to a bank on a building loan
• C) the cost of using capital an owner donates to the business
• D) dollars paid to a supplier for materials used in production
• E) liability insurance payments made only once a year

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Definitions:

Insight

The capacity to gain an accurate and deep understanding of someone or something.

Categories

Concepts or classes that group objects, events, or characteristics based on shared properties or attributes.

Phonemes

The smallest units of sound in a language that can distinguish one word from another.

Prerequisite

A requirement that must be fulfilled before proceeding to a subsequent stage or level, often used in academic contexts.