ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A trade-off is what occurs when we make a choice. When we sacrifice own thing to obtain another, it is called a “trade-off.” When we only have enough money to buy either a bicycle or a snowboard, there is a trade-off.

Detailed explanation-2: -Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services.

Detailed explanation-3: -trade-offs In economics, a trade-off is defined as an “opportunity cost.” For example, you might take a day off work to go to a concert, gaining the opportunity of seeing your favorite band, while losing a day’s wages as the cost for that opportunity.

Detailed explanation-4: -Trade-offs occur when activities are incompatible. Simply put, a trade-off means that more of one thing necessitates less of another. An airline can choose to serve meals-adding cost and slowing turnaround time at the gate-or it can choose not to, but it cannot do both without bearing major inefficiencies.