Question

Identify the following as explicit costs or implicit costs. Joe takes a week off from his job to care for his grandmother. implicit cost Nancy quits her job and goes back to college. (Select] Fred buys car insurance. [Select] Brenda pays her apartment rent even though she is living at home with her parents during the COVID-19 Pandemic. (Select]

Answer 1

(1) Implicit cost as the cost is the income Joe could ahve earned in the week (opportunity cost)

(2) Implicit cost as the cost is the income Nancy could have earned in her job (opportunity cost)

(3) Explicit cost as the cost is the explicitly paid car insurance

(4) Explicit cost as the cost is the explicitly paid rent for the apartment.