Mauricio Finds Himself Fiscally Overextended and Seeks Counseling from a Bankruptcy

question 56

Multiple Choice

Mauricio finds himself fiscally overextended and seeks counseling from a bankruptcy expert.The expert urges him to try to change his debt management behaviors to avoid bankruptcy.Which of the following is likely NOT one of the things he is instructed to do?

• A) Develop and stick to a balanced budget.
• B) Work to reduce the total number of debts.
• C) Pay off debts with low interest rates first.
• D) Avoid debt consolidation loans.

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Definitions:

Low Opportunity Cost

A situation where the cost of foregoing the next best alternative is relatively minimal when choosing one option over another.

Computer Software

Programs and operating information used by a computer to perform specific tasks.

Law Of Comparative Advantage

is an economic principle that states countries (or entities) gain when they produce goods and services for which they have a lower opportunity cost, leading to more efficient global production.

Low-Opportunity Cost Producer

An entity that can produce a good or service at a lower sacrifice of alternative goods compared to others.