Implicit Costs: Definition & Examples

Instructions:

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

question 1 of 3

What are the two umbrella categories of expenses?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 75,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. All of the following are alternative terms for implicit costs, EXCEPT:

2. Jesse decides to leave his job as a programmer with a salary of $70,000 to form his own startup, and he elects not to take a salary in the company's first year. Why would the $70,000 in lost income not be calculated in his company's financial records?

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

This quiz and printable worksheet quickly gauge your knowledge of what implicit costs are and why they are calculated. Topics you will need to know in order to pass the quiz include lost profits and examples of explicit costs.

Quiz & Worksheet Goals

Use this worksheet and quiz to review:

  • Other terms used to mean implicit costs
  • Umbrella categories of expenses
  • Implicit costs
  • Explicit costs

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related implicit cost lesson
  • Defining key concepts - ensure that you can accurately define main phrases, such as explicit and implicit costs
  • Knowledge application - use your knowledge to answer questions about financial records

Additional Learning

Get more information on this subject by reading Implicit Costs: Definition & Examples. The lesson has the following topics:

  • Differences between explicit costs and implicit costs
  • Examples of lost profits
  • Benefits without expenditures
Support