Final answer:
The "long-term costs" of an economic decision refer to future sacrifices as a result of current consumption or choices. This is related to intertemporal decision making and involves evaluating opportunity costs and the present discounted value of future cash flows or benefits.
Step-by-step explanation:
When someone is making an economic decision, the term "long-term costs" refers to what the person is giving up in the future to have what they want now. This involves intertemporal decision making, which economists define as decisions that span across different time periods. For example, in choosing to spend money on a vacation now, one might be giving up the potential future growth of that money had it been saved or invested.
In the context of environmental policy or financial decisions, present discounted value is a crucial tool for analyzing the benefits and costs that occur over different times in the future. Understanding opportunity cost is also integral to economic decision-making as it represents the value of the next best alternative foregone as a result of the decision.