An Example of an Implicit Cost Is

question 133

Multiple Choice

An example of an implicit cost is:

• A)interest paid on a bank loan used to purchases equipment.
• B)wages paid to a family member who works at the firm.
• C)the value of a spare bedroom turned into a home office.
• D)operating costs of a company-owned car.

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Definitions:

Relative Risk

A ratio comparing the probability of an event occurring in an exposed group to a non-exposed group.

Fasting Glucose

Measurement of blood sugar levels after abstaining from food and drink (except water) for at least 8 hours, used in diagnosing diabetes.

CVD

Cardiovascular Disease, a class of diseases that involve the heart or blood vessels.

Relative Risk

A measure used in epidemiology to compare the risk of a certain event occurring in one group with the risk of it occurring in another group.