26831
AssignmentMultiple Choice

Principles of Financial Planning

Question 26831 • Economics 26-27

In this scenario, Frankie must consider whether making one choice will force him to give up another.Based on what you have read, which economic concept is Frankie faced with?

Answer
A
needs vs. wants
B
opportunity cost
C
risk and return
D
goal setting

Explanation

When Frankie must give up one option to choose another, he faces an opportunity cost. Opportunity cost is the value of the next-best choice that is given up. “Needs vs. wants” compares types of goods, while risk and return and goal setting refer to different economic ideas.

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