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Mila [183]
3 years ago
15

Paul had three ways to use his allowance money: spend, save, or donate. He decided to donate his money to charity. Any value giv

en up by not choosing to spend or save the money is the _____ .
History
2 answers:
blondinia [14]3 years ago
5 0

Answer:

Opportunity cost

Explanation:

Opportunity cost is a microeconomic concept used to describe how much an economic agent fails to earn in one economic activity by employing money in another economic activity. For example, if a business owner is in doubt between investing in a factory or in stocks. The opportunity cost of investing in a factory is the value the entrepreneur fails to earn in the financial market. And vice versa.  If Paul donates his money, he makes a choice to give up all the value that money could bring to his leisure and finances. This is the opportunity cost of giving.

nignag [31]3 years ago
3 0
<span>Any value given up by not choosing to spend or save the money is the _____ .
Opportunity Cost</span>
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