ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The opportunity cost is the most desirable trade-off.
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A trade-off is the most expensive opportunity cost.
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A trade-off can be put on a decision-making grid, but an opportunity cost cannot.
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It’s more important to be aware of the trade-off when deciding something.
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Detailed explanation-1: -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. Opportunity cost refers to the value of the next best alternative of an economic decision.
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: -Why must the opportunity cost of a decision always be something desirable? An opportunity cost must be desirable because there would be no meaningful decision to be made between a desirable option and an undesirable.
Detailed explanation-4: -Trying to decide whether to take the Fourth of July off to spend with your family, or to go to work and make extra overtime? 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-5: -In economics, the term trade-off is often expressed as opportunity cost. A trade-off involves a sacrifice that must be made to obtain a desired product or experience. Understanding the trade-off for every decision you make helps ensure that you are using your resources (whether it’s time, money or energy) wisely.