In Terms of Money Management Decisions,an Example of an Opportunity

question 50

Multiple Choice

In terms of money management decisions,an example of an opportunity cost includes:

• A)Spending for current living expenses increases the amount you have for saving and investing.
• B)Saving and investing for the future reduces the amount you can spend now.
• C)Buying on credit results in payments later and increases the amount of future income available.
• D)Using savings for purchases results in additional interest earnings.
• E)Comparison shopping can cost you money and time.

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Definitions:

Just-World Phenomenon

The cognitive bias that a person's actions are inherently inclined to bring morally fair and fitting consequences to that person, to the end of all noble actions being eventually rewarded and all evil actions eventually punished.

Victims of Misfortune

Individuals who suffer from unfortunate events or circumstances that are beyond their control and often elicit sympathy from others.

Just-World Phenomenon

The cognitive bias to believe that the world is fair and people get what they deserve, leading to rationalizing inequality or suffering.

Ebola Virus

A severe and often fatal disease in humans and primates caused by the Ebola virus, characterized by fever, bleeding, and organ failure.