Economics 9708 · AS & A Level · 7.5

7.5 — practice question

An economist determines that an owner-managed firm has had the following costs during one year: wages of two employees $150k, payment to wife for secretarial services $20k, opportunity cost of owner’s time $30k, materials $80k, rent $30k, marketing fees $20k, interest on bank loans $25k, and interest forgone on finance provided by owner $15k. By what amount is total cost, as calculated by an economist, greater than total cost, as calculated by an accountant?

  • A$15 000
  • B$30 000
  • C$45 000
  • D$65 000

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