3
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 3 • EA Academy Civics 9

When looking at the opportunity cost of an economic decision, what is meant by the explicit costs of that decision?

Answer
A
options that were lost due to the decision
B
any cost that can be measured in terms of money
C
employment opportunities the decision will create
D
the potential savings the decision will bring

Explanation

Explicit costs are direct costs paid in money, such as wages, rent, or materials. Therefore, the correct choice is “any cost that can be measured in terms of money.” Options that were lost are opportunity costs, not explicit costs.

AI-written and checked against the verified answer.

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