Economic Cost: Definition & Function

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Which of the following options is the best explanation of an economic cost?

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1. What's another name for economic cost?

2. What's the difference between economic costs and accounting costs?

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About This Quiz & Worksheet

Making efficient financial decisions depends heavily on your understanding of economic costs, and this quiz and worksheet combination will help you test how well you understand this concept. Some of the questions you'll be asked cover the definition of an economic cost, the factors that make economic costs different from accounting costs, and the function of economic costs.

Quiz & Worksheet Goals

In these assessments, you'll be tested on the following:

  • Definition of an economic cost
  • Relationship between economic, opportunity, and accounting costs
  • Purpose of economic cost analyses

Skills Practiced

This quiz and worksheet allow students to test the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related economic cost lesson
  • Making connections - use your understanding of the concept of costs in order to grasp the function of economic costs
  • Distinguishing differences - compare and contrast topics from the lesson, such as economic and accounting costs
  • Interpreting information - verify that you can read information regarding economic costs and interpret it correctly

Additional Learning

To learn more about this subject, review the accompanying lesson called Economic Cost: Definition & Function. This lesson covers the following objectives:

  • Define economic/opportunity costs
  • Differentiate between economic and accounting costs
  • Understand the non-monetary factors that contribute to economic costs
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