c08sendout - 1. What do wages paid to blue-collar workers,...

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1. What do wages paid to blue-collar workers, interest paid on a bank loan, forgone interest, and the purchase of component parts have in common? A) None are either implicit or explicit costs. B) All are opportunity costs. C) All are implicit costs. D) All are explicit costs. 2. Implicit and explicit costs are different in that: A) explicit costs are relevant only in the short run. B) implicit costs are relevant only in the short run. C) the latter refer to nonexpenditure costs and the former to out-of-pocket costs. D) the former refer to nonexpenditure costs and the latter to out-of-pocket costs. 3. Accounting profits are typically: A) greater than economic profits because the former do not take explicit costs into account. B) equal to economic profits because accounting costs include all opportunity costs. C) smaller than economic profits because the former do not take implicit costs into account. D) greater than economic profits because the former do not take implicit costs into account. 4. Economic profits are calculated by subtracting: A) explicit costs from total revenue. B) implicit costs from total revenue. C) implicit costs from normal profits. D) explicit and implicit costs from total revenue. 5.
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c08sendout - 1. What do wages paid to blue-collar workers,...

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