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Sliva [168]
4 years ago
11

Understanding Financial Choices

English
1 answer:
valkas [14]4 years ago
5 0

Answer:

.  Paying rent is a need while buying a new video game is a want.

. realizing opportunity cost                              

Explanation:

A need can be defined as something that an individual requires in order to lead a healthy lifestyle. When a need occurs, a deficit produces a direct negative result: a disease or death.

Whereas on the other hand, wants are aspirations which can be fulfilled by enjoying a successful operation, facility, or recreation.

In simple words, opportunity cost refers to the loss of profits that an individual faces due to choosing best alternative over second best alternative  

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