ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Trade-offs are all the alternatives that we give up whenever we choose one course of action over others. The most desirable alternative given up as a result of a decision is known as opportunity cost.

Detailed explanation-2: -A tradeoff is loosely defined as any situation where making one choice means losing something else, usually forgoing a benefit or opportunity.

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: -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-5: -Every decision has trade-offs. First, every decision has trade-offs. Because scarcity exists, we have to decide what the best use of our limited time and resources is. With each choice there is something we must give up.