The economic term is the opportunity cost.
The concept of opportunity cost is a relatively inexpensive and relative measure that involves people's preferences, so it varies from person to person. It is a question of comparing what is left over when making a decision.
In Katie's case, the opportunity cost of the money she saves to buy a car is what she fails to do with that money. For example, she stops investing in stocks, fails to make a trip, etc.
All decisions involve an opportunity cost. Taking another example, the opportunity cost of studying for the test at the end of the week is measured by the loss of leisure you would have. However, the decision to study for the test is chosen because it is more valuable.
Answer:Installment sales and credit sales are quite similar
Explanation:Installment sales and credit sales are quite similar. Each is a form of credit that provides a way for goods to be delivered and the payment for the goods to be deferred to a later date. However, there are two key differences between installment and credit sales: time to repay and collateral. While a credit sale is a short-term payment deferral option, an installment sale is generally stretched over many years. Collateral refers to the type of assets used to secure the credit.
