Suppose a person quits a job earning $45 comma 000 per year and starts a business with $175 comma 000 withdrawn from a money-market account earning 12 percent per year. The implicit cost of the business is for the entrepreneur’s time plus for the entrepreneur’s funds.

$45,000 and $21,000

Explanation:

The computation of the implicit cost and the extra amount is shown below:

Implicit cost means the cost of opportunity lost so quitting job means opportunity cost.

Therefore,

The implicit cost of the business is $45,000 per year for the entrepreneur’s time plus the amount is $21,000 for the fund of entrepreneur

= $175,000 × 12%

= $21,000

answer; ///i believe the correct two answer are (1) paid in capital; and (2) earned   capital; good luck

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know