ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A trade-off is a kind of compromise that involves giving up something in return for getting something else.

Detailed explanation-2: -A tradeoff is loosely defined as any situation where making one choice means losing something else, usually forgoing a benefit or opportunity. We experience tradeoffs in zero-sum situations when a plus in one area must be a negative in another.

Detailed explanation-3: -Trade-offs are all the alternatives that we give up whenever we choose one course of action over others. The most desirable alternative given up as a result of a decision is known as opportunity cost.

Detailed explanation-4: -Words related to trade-off accommodation, accord, adjustment, arrangement, bargain, concession, deal, pact, settlement, understanding, acknowledgment, admission, compromise, grant, permit, privilege, banter, reciprocity, agreement, compensation.

Detailed explanation-5: -Understanding the trade-off for every decision you make helps ensure that you are using your resources (whether it’s time, money or energy) wisely. Next time you decide to spend some extra money on a fancy dinner, think about the other things you could do with that money.