Final answer:
When you consider both the seen and unseen consequences of your decisions, you are examining the opportunity cost, which is what you forgo in making one choice over another, applicable in financial and personal situations.
Step-by-step explanation:
When you consider the seen and the unseen of your decisions choices, you are considering what the opportunity cost is. The term opportunity cost refers to the most desirable alternative given up as the result of a decision. Explicit costs are actual payments made, like wages or rent, while implicit costs, which are equally important, refer to the opportunity costs of using resources that a firm already owns, such as an owner's time or using space in a home for business purposes.
Opportunity cost can also be seen in everyday decisions, such as spending time with family versus working, or in financial terms, like the potential other uses of money spent on purchasing an item. Often, opportunity cost is what you forego by choosing one alternative over another and is essential in both personal and business decision-making processes.