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QuizMultiple Choice

Principles of Financial Planning — Quiz

Question 1 • Economics

When studying finance or economics, the cost of a decision is also known as a(n)

Answer
A
opportunity cost.
B
financial cost.
C
personal cost.
D
long-term cost.

Explanation

The cost of a decision includes the value of the next-best alternative you give up by choosing it. This is called the opportunity cost, so “opportunity cost” is the correct choice.

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