Final answer:
Explicit taxes are easier to estimate compared to implicit taxes because explicit taxes have clear guidelines and structures provided by the government. Implicit taxes involve complex factors and assumptions, making their estimation more challenging.
Step-by-step explanation:
Explicit taxes are taxes that are directly imposed on individuals or businesses, such as income tax or sales tax. Implicit taxes, on the other hand, are the indirect costs associated with certain economic decisions, such as the opportunity cost of using a self-owned asset instead of renting it out and collecting rent.
Regarding the estimation of implicit and explicit taxes, it can be said that implicit taxes are generally more difficult to estimate compared to explicit taxes. This is because explicit taxes have clear guidelines and structures provided by the government, making them easier to measure and calculate. On the other hand, implicit taxes involve complex factors and assumptions, making their estimation more challenging.
For example, calculating the explicit tax on a purchase can be as simple as multiplying the tax rate by the purchase price. However, estimating the implicit tax on a self-owned property requires considering the fair market value, rental rates, and other economic variables that may vary.