7
QuizMultiple Choice

Earning Income — Test

Question 7 • Personal Finance

What is the first question people should ask themselves when they’re about to make an economic decision?

Answer
A
“What will others think of me if I get this?”
B
“What will I be giving up in the future to get this?”
C
“How much do I value or need this?”
D
“What do I have to give up now to get this?”

Explanation

The first question is about opportunity cost: what you must give up to get what you want. Asking “What do I have to give up now to get this?” helps compare the benefit of the choice with the next-best alternative. Choice B focuses on what might be given up in the future, rather than the immediate trade-off.

AI-written and checked against the verified answer.

Previous
Next