Accounting costs and economic costs differ because
A. Accounting costs include explicit costs, and economic costs do not.
B. Accounting costs exceed economic costs whenever any factor is not paid an explicit wage.
C. Accounting costs include implicit costs, and economic costs do not.
D. Economic costs include the opportunity costs of all resources used, while accounting costs include actual dollar outlays.
Answer: D
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Which of the following statements is true?
A) As the rental prices of downtown apartments rise, only workers with the lowest opportunity cost of time will be willing to rent them. B) As the rental prices of downtown apartments rise, only workers with the highest opportunity cost of time will be willing to rent them. C) Optimizers with the lowest opportunity cost of time push up the rental price of apartments with the lowest commute time. D) Optimizers with the highest opportunity cost of time push up the rental price of apartments with the highest commute time.
As the real wage rate rises, the opportunity cost of
A) working rises. B) saving rises. C) leisure rises. D) buying goods and services rises. E) leisure falls.