Chapter 20 & 21 Review

Front

involves giving up one option in exchange for another

Back

tradeoff

Front

Henry is deciding between spending more time on a project or attending a workshop. This decision-making process involves giving up one option in exchange for another. What is this called?

Back

tradeoff

Front

an expense that occurred in the past for which money was spent and cannot be recovered

Back

sunk cost

Front

Daniel spent $200 on a marketing course that did not benefit his business. This expense is an example of what?

Back

sunk cost

Front

the value of your next best choice

Back

opportunity cost

Front

James is considering whether to go to a movie or stay home and study. The value of his next best choice is known as?

Back

opportunity cost

Front

What are the items necessary for maintaining physical life? (Include food, water, and shelter)

Back

basic needs

Front

In a survival training exercise, Nora, Abigail, and Jackson are taught to prioritize the items necessary for maintaining physical life. What are these items called?

Back

basic needs

Front

money left over when expenses are paid; can be spent as you wish

Back

discretionary income

Front

After paying all her monthly bills, Charlotte notices she has some money left over that she can spend as she wishes. What is this type of money called?

Back

discretionary income