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Paul had three ways to use his allowance money: spend, save, or donate. He decided to donate his money to charity. Any value given up by not choosing to spend or save the money is the _____ .

A) opportunity cost
B) marginal cost
C) trade-off


Sagot :

In this case, any value given up by not choosing to spend or save the money is the "opportunity cost", because the money could be spent elsewhere. "trade offs" and opportunity costs are very similar though in economics.

Answer:

OPPORTUNITY COST

Explanation: