Spending money on a fixed budget is an example of:
A) a bad thing to do because you run out of money.
B) living on the edge.
C) how to survive with unlimited financial resources.
D) the principle of opportunity cost.

Question

Quizplus · Accepted Answer

Spending money on a fixed budget means that you have limited financial resources and must prioritize how you allocate your funds. This is an example of the principle of opportunity cost, which involves making choices between different options with limited resources. By choosing to spend money on certain things, you are also choosing to forgo spending that money on other things. This is an important concept to understand when managing your finances effectively.

Spending Money on a Fixed Budget Is an Example Of