ECONOMICS
OPPORTUNITY COST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Your choice
|
|
|
What you give up to make a choice
|
|
|
How much money you pay
|
|
|
The willingness to give something away
|
Detailed explanation-1: -A tradeoff is loosely defined as any situation where making one choice means losing something else, usually forgoing a benefit or opportunity.
Detailed explanation-2: -: a giving up of one thing in return for another : exchange. trade off transitive verb.
Detailed explanation-3: -A trade-off is a kind of compromise that involves giving up something in return for getting something else. When looking you for an after-school job, you might have to make a trade-off: a lower hourly wage for a more convenient location, for example.
Detailed explanation-4: -The need to make choices arises because of scarcity, the basic problem in economics. Individuals are forced to make trade-offs every time they use their resources in one way and not in another.
Detailed explanation-5: -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.