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4 years ago

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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