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The amount of income that would result from an alternative use of cash is called:_______.

User Taj Morton
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Answer:

The answer is opportunity cost

Step-by-step explanation:

Opportunity cost is the cost of an alternative forgone action. The cost of an action not taken. For example, Mr A had the chance to choose between job X and job Y, if he chooses job X, the salary that job Y will pay if he had chosen them will be the opportunity cost.

Therefore, the amount of income that would result from an alternative use of cash is the OPPORTUNITY COST.

User Milo Chen
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