ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -That’s a trade-off. Trade-offs create opportunity costs, one of the most important concepts in economics. Whenever you make a trade-off, the thing that you do not choose is your opportunity cost.

Detailed explanation-2: -trade-off-the giving up of one thing in return for something else. When you buy or do one thing with your money, you have to give up the chance to buy or do something else. This is a trade-off. opportunity cost-what you give up to get what you want.

Detailed explanation-3: -All choices, whether they are made by individuals or by groups of individuals such as governments, have a cost associated with them; economists call this an Opportunity Cost. Opportunity cost is the value of the benefits of the foregone alternative, of the next best alternative that could have been chosen, but was not.

Detailed explanation-4: -Individuals are forced to make trade-offs every time they use their resources in one way and not in another. The cost of making a trade-off is known as opportunity cost-the value of the next best alternative that has to be given up to do the action that is chosen.

Detailed explanation-5: -Making decisions requires trading off one item against another. In economics, the term trade-off is often expressed as an opportunity cost, which is the most preferred possible alternative. A trade-off involves a sacrifice that must be made to get a certain product or experience.