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11 Dec 2019

Explicit costs are payments the firm makes for:

(i) outputs such as desks for its employees, whereas implicit costs are expenditure costs that occur for services such as travel expenses for its employees.

(ii) outputs such as desks for its employees, whereas implicit costs are non-expenditure costs that occur through the use of self-owned resources such as foregone income.

(iii) inputs such as wages and salaries to its employees, whereas implicit costs are non-expenditure costs that occur through the use of self-owned resources such as foregone income.

(iv) inputs such as wages and salaries to its employees, whereas implicit costs are expenditure costs that occur for services such as travel expenses for its employees.

Name: Explicit costs are payments the firm makes for: (i) outputs such as desks for its employees, whereas ...
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Description: Explicit costs are payments the firm makes for: (i) outputs such as desks for its employees, whereas implicit costs are expenditure costs that occur for services such as travel expenses for its employees. (ii) outputs such as desks for its employees, where...

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Related questions

Question 3

We saw in class that the same good can fall in different categories (public/private/club/common resource) depending on circumstances. An example of such a good would be watching a movie at the theater. If a lot of people want to watch it, the movie is a _________. If very few people want to watch it (to the point where a room could not even be filled), the movie is likely to be a _______.

A. a common resource; a public good

B. a public good; a common resource

C. a private good; a club good

D. a club good; a private good

3 points

Question 4

Which of the following statements about the free-rider problem is not true?

A. Individuals have an incentive to free-ride when the good is not excludable.

B. The kinds of goods for which the free rider problem arises are common resources and public good.

C. Markets for goods for which there is a free-rider problem are inefficient because not enough of the good is produced.

D. Goods for which the free-rider problem exists tend to be over provided relative to what would be optimal.

4 points

Question 5

To achieve the efficient provision of public goods, the

A. market should be allowed to operate without government intervention.

B. government must limit the provision of those goods.

C. government must tax producers of those goods.

D. government must either provide those goods or subsidize their production.

3 points

Question 6

Which of the following statements about public goods is not true?

A. Because people cannot be excluded from their consumption and thus have no incentive to pay for them, public goods are underprovided by the market.

B. Efficiency requires that the government provide or fund (subsidize) the provision of all public goods.

C. Efficiency requires that the government provide or fund only the public goods that create more benefits than costs to society.

D. In reality, it is hard to provide public goods efficiently.

3 points

Question 7

Public goods must be provided by the government as the market on its own will fail to provide them. However, even with government provision it is very hard to achieve efficiency. Why?

A. In reality, it is very hard (if not impossible) to accurately estimate the benefits of providing a public good.

B. A. In reality, there can be overruns in the cost of providing the public good.

C. Government decisions about which public goods to provide can be influenced by lobbying by interest groups.

D. All of the above are true.

4 points

Question 8

Which of the following is not a common resource?

A. congested roads

B. clean water

C. wild life, which hunters want to hunt and others want to view.

D. a fireworks display.

3 points

Question 9

Many species of animals must be protected by law to keep them from extinction. Why are cows not one of these endangered species even though there is such a high demand for beef?

A. Cows reproduce at a high rate and have adapted well to their environment.

B. Public policies protect cows from predators and diseases.

C. Cows are privately owned (private goods), whereas many endangered species are owned by no one (common resources).

D.There is a natural ecological balance between the birth rate of cows and human consumption.

3 points

Question 10

Which of the following statements about common resources is not true?

A. Due to the free-rider problem, common resources tend to be overused.

B. Because there is rivalry in the consumption of common resources, whenever one person uses a common resource it is imposing a negative externality on others who might also want to use it.

C. There are no private solutions to the management of common resources.

D. One of the solutions that ensures that common resources are properly managed is their privatization.

3 points

Question 11

In our analysis of the firmâs behavior and goals, when we talk about cost, we include _________, and when we talk about profit, we mean ________.

A. Explicit costs only; economic profit

B. Implicit costs only; economic profit

C. Implicit costs only; accounting profit

D. Explicit + implicit costs; economic profit

E. Explicit + implicit costs; accounting profit

3 points

Question 12

One of the differences between explicit and implicit costs is that

A. explicit costs must be greater than implicit costs.

B. explicit costs do not require a direct monetary outlay, whereas implicit costs do.

C. implicit costs do not require a direct monetary outlay, whereas explicit costs do.

D. implicit costs must be greater than explicit costs.

3 points

Question 13

Which of the following is FALSE:

A. If accounting profit is zero, then economic profit is negative

B. Economic profit takes cost the opportunity cost of time and capital into account

C. Economic Profit = Accounting Profit + Implicit Cost

D. Economic Profit = Accounting Profit â Implicit Cost

3 points

Question 14

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

(i) the owner of a firm forgoing an opportunity to earn a large salary working in Wall Street

(ii) interest paid on the firm's debt

(iii) rent paid by the firm to lease office space

A. (ii) and (iii) only

B. (i) and (iii) only

C. (i) only

D. (iii) only

3 points

sapphirekangaroo316

1-Principal __________________ fall into three categories: depository institutions (banks), contractual savings institutions, and investment intermediaries.

Financial markets security exchanges financial intermediariesâ investment funds

Savings institutions

bitcoin/annuity payments securities/investment advice

2-Deposits that are payable on demand but do not allow their owner to write checks are called _______________.

Restricted deposits savings deposits time sensitive deposits non-checkable deposits demand deposits

3-Deposit with fixed terms to maturity are called ___________.

Relative deposits term deposits fixed deposits restricted deposits time deposits

4-Commercial banks ___________ primarily by issuing checking deposits, savings accounts, and time deposits.

Increase profits decrease cost attract investors raise funds increase assets

5-A type of depository institution that over time has become more like commercial banks and are now more competitive with each other are called ______________ associations and mutual savings banks.

savings and loan contractual savings institutions, investment intermediaries

crowd funding sites deposit and loan

6-Credit unions are typically very small cooperative lending institutions organized around a particular _____________________: members of the same union, employees of a particular firm, and members of the same profession, such as teachers.

Type of investment corporation financial strategy risk avoidance strategy

group that have something in common

7-Insurance companies and pension funds are examples of ________________ institutions.

contractual savings depository institutions (banks), investment intermediaries entrepreneurial at risk

8-Contractual savings institutions (CSIâs) acquire funds at _______________ on a contractual basis.

Estate sales periodic intervals bankruptcy auctions liquidations initial offerings

9-CSIâs do not worry as much as banks about losing funds quickly because they can predict with reasonable accuracy how much they will have to pay out in ___________ in coming years.

Interest payments dividends bank notes benefits IOUâs

10-_______________ is not as important a consideration for CSIâs as it is for banks.

Types of customers adverse selection Liquidity of assets portfolio diversification liabilities

11-CSI investments are typically ____________ such as corporate bonds, stocks, and mortgages.

Short-term securities long-term securities 3-month term securities overnight securities short-term assets

12-Companies that insure people against financial hazards following a death and sell annuities are called ________________________.

Predatory companies over-the-counter companies risky companies life insurance companies depository companies

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Interest dividends installments late fees Premiums

14-Companies that ___________ their policyholders against loss from theft, fire, and accidents are called fire and casualty insurance companies.

Insure Hold harmless guarantee advise oversee

15-Fire and casualty insurance companies acquire funds through the _________________ for their policies.

Sale of stock liquidation of collection of premiums interest payments dividends

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Comprehensive insurance liquid assets risky assets corporate insurance bankruptcy insurance

17-Private pension funds and state and local retirement funds provide _______________ in the form of annuities to employees who are covered by a pension plan.

Dividends revenue stock options retirement income loans

18-Pension funds acquire funds from _____________ from employers and employees.

Fees pledges contributions garnishments payroll deductions

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Liability holdings asset holdings interest payments dividend payments fees

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depository institutions (banks), contractual savings institutions, stock markets

bond markets Investment intermediaries

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Issuing/selling selling/buying selling/ issuing buying/issuing discounting/shorting

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investment intermediaries corporations

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depository institutions (banks), mutual funds contractual savings institutions

stock markets bond markets

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risky Subject to high returns certain investments interest rate neutral misunderstood

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Deposits/insurance companies bonds/banks shares/insurance companies

Shares/ banks stock options/crowd sourcing sites

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High risk/non-liquid junk bonds/risky assets low risk/ liquid assets low risk/junk bonds sub-prime securities/liquid assets

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Has no fees pays them interest offers overdraft protection pays dividends

always has money in it

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Person foreign country stock market corporation bond market

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Insurance loans interest rates dividends products securities

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Discounting re-selling insuring advertising financing

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Depositories money launders deal makers insurance companies entrepreneurs

Question 11 pts

Which of the following terms describe the types of adjusting entries?

expenses and revenues

prepaid expenses and prepaid revenues

deferrals and accruals

deferrals and depreciation

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Question 21 pts

Unearned Revenue is always

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Question 31 pts

The adjusted trial balance shows

assets, liabilities, and common stock only

revenues and expenses only

amounts that may be out of balance

amounts that are ready for the financial statements

Flag this Question

Question 41 pts

Which of the following accounts is not closed?

Salaries Expense

Dividends

Accumulated Depreciation, Equipment

Service Revenue

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Question 51 pts

Given the following adjusted trial balance:

	Debit	Credit
Cash	$1,562
Accounts receivable	2,098
Inventory	3,124
Prepaid rent	86
Equipment	300
Accumulated depreciation-equipment		52
Accounts payable		82
Unearned service revenue		122
Common stock		206
Retained earnings		6,610
Service revenue		268
Interest revenue		56
Salaries and wages expense	160
Travel expense	66
Total	$7,396	$7,396

Net income for the year is

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Question 61 pts

Wolf Pack Services receives $10,000 cash in advance of services performed and credits a liability account. Which of the following adjusting entries will need to be made after the services are performed?

Accounts		Debit	Credit
Unearned Service Revenue		10,000
	Cash		10,000

Accounts		Debit	Credit
Unearned Service Revenue		10,000
	Service Revenue		10,000

Accounts		Debit	Credit
Unearned Service Revenue		10,000
	Prepaid Expense		10,000

Accounts		Debit	Credit
Unearned Service Revenue		10,000
	Accounts Receivable		10,000

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Question 71 pts

Accumulated Depreciation is a(n)

liability account

stockholderâs equity account

contra asset account

asset account

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Question 81 pts

Kimmel Companyâs accountant makes the following entry to record $2,000 of depreciation expense on the companyâs equipment on December 31, 2013:

	Dr.	Cr.
Depreciation Expense	2,000
Cash		2,000

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adjust the accounts to their proper amounts on December 31, 2013

understate total assets on the balance sheet as of December 31, 2013

overstate the book value of the depreciable assets at December 31, 2013

understate the book value of the depreciable assets as of December 31, 2013

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Question 91 pts

The weekly payrool of Wolverine Corporation is $3,000. Employees work five days per week, Monday through Friday. December 31, 2013, the end of the fiscal year, is a Tuesday. Wolverine Corporation will not pay its employees for the full week until Friday, its normal payday. Wolverine Corporation will make which of the following adjusting entries on Tuesday, December 31?