Answer:
1. <u>implicit cost</u>
2.<u> explicit cost</u>
3. <u>implicit cost</u>
4. <u>explicit cost</u>
Explanation:
Implicit costs refer to those costs that represent opportunity cost. In simple terms they are notional or those which haven't been actually incurred but considered.
Opportunity costs refer to the cost of sacrificed alternatives when an alternative is opted for. For instance, a student pursuing post graduation incurs implicit cost in the form of income foregone had he chosen to work instead for the same duration.
In the given case, the foregone rental income Jacques would've earned had he chosen to rent out his showroom represents opportunity cost or implicit cost.
Similarly, the salary Jacques sacrificed by working in boat business represents implicit cost.
The wages and utility bills that Jacques pays and wholesale cost which he pays represent costs which have actually been incurred, which are termed as explicit costs.
Which of the following is an example of irregular income?
A. A full-time job
B. A part-time job
C. A graduation gift
D. Both b and c
The answer is C
Answer: 2) increasing opportunity costs.
Explanation:
The Production Possibilities frontier is bowed out as it shows that for one more unit of a good to be produced, an additional unit of the other good must be given up.
This represents increasing opportunity costs because opportunity cost is the cost we incur for choosing one alternative over another. By producing more and more of one good, we give up more and more of the other good which means that our opportunity cost rises.
Answer:
D. $44,580
Explanation:
Here we want to find the yearly value of the compensation package.
To order to do so, we have to add the various terms. We have:
salary per year
Then we have the total cost of a $180-per-
month health insurance plan; since there are 12 months in a year, it is
per year
Then we have the total cost of a $35-per-month life insurance, so the yearly cost is
Therefore, the total compensation package is
So, option D.
