1
QuizMultiple Choice

Principles of Financial Planning

Question 1 • Personal Finance - EL3403

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

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

Explanation

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

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