ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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trade-off
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opportunity cost
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sacrifice of need
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sacrifice of want
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Detailed explanation-1: -A trade-off is a kind of compromise that involves giving up something in return for getting something else.
Detailed explanation-2: -A trade-off involves a sacrifice that must be made to get a certain product or experience. A person gives up the opportunity to buy ‘good B, ’ because they want to buy ‘good A’ instead.
Detailed explanation-3: -Words related to trade-off accommodation, accord, adjustment, arrangement, bargain, concession, deal, pact, settlement, understanding, acknowledgment, admission, compromise, grant, permit, privilege, banter, reciprocity, agreement, compensation.
Detailed explanation-4: -Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services.
Detailed explanation-5: -An opportunity cost example of trade-offs for an individual would be the decision by a full-time worker to take time off work with a salary of $50, 000 to attend medical school with an annual tuition of $30, 000 and earning $150, 000 as a doctor after 7 years of study.