ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The opportunity cost of an economy investing resources in new capital goods is the production of consumer goods given up for today. A trade-off arises where having more of one thing potentially results in having less of another.

Detailed explanation-2: -What is the difference between a trade-off and an opportunity cost in economics? The difference between trade-offs and opportunity cost is that a trade-off refers to the decision to pick an alternative, whereas opportunity cost refers to the value of the forgone alternative.

Detailed explanation-3: -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-4: -Opportunity cost (also known as “alternative cost, ”) is the difference between a project’s cost estimate and another option that must be foregone in order to implement the project. Every choice we make also means giving up another option.

Detailed explanation-5: -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.