Final answer:
Explicit costs, such as those for guest supplies, cleaning supplies, and printing items, are out-of-pocket expenses that are included in the calculation of GDP if they are related to production. Implicit costs represent opportunity costs of using owned resources. Certain transactions are excluded from GDP, like unpaid services and sales of used products.
Step-by-step explanation:
The costs associated with guest supplies, cleaning supplies, and printing and stationery items are significant in the management of a business and are considered explicit costs. Explicit costs are tangible out-of-pocket expenses, such as payments for goods and services that a firm incurs in its operations. In contrast, implicit costs are the opportunity costs of utilizing resources that the firm already owns, which may include the owners' time, equipment depreciation, or the use of a part of a home as a business space.
When discussing Gross Domestic Product (GDP), explicit costs associated with transactions involving the production of goods and services in an economy are considered. Thus, items such as hospital stays and child care provided by a licensed day care center are included in GDP since they represent final goods and services for which there is a market transaction. On the other hand, non-market transactions like the child care provided by a grandmother, or a used car sale, which is not a production activity, are not included in GDP. Additionally, items like the iron used in the making of a refrigerator's steel are included in the GDP as they are embedded in the final consumer product.