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 giving up of one thing in return for another : exchange. trade off transitive verb.

Detailed explanation-3: -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-4: -An example of a trade-off and its opportunity cost is: Liv gets $100 for her birthday and decides to spend the whole $100 on a new pair of shoes instead of using it for a nice dinner with her boyfriend or buying a new pair of jeans and a shirt or getting a gym membership.

Detailed explanation-5: -The term “trade-off” is employed in economics to refer to the fact that budgeting inevitably involves sacrificing some of X to get more of Y. With a fixed amount of savings, one can buy a car or take an expensive vacation, but not both. The car can be “traded off” for the vacation or vice versa.