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. We experience tradeoffs in zero-sum situations when a plus in one area must be a negative in another.

Detailed explanation-3: -Trade-offs are Crucial to Good Decision Making And there is no guarantee that a good decision will lead to a good outcome. But having a solid process increases our chances of a good decision and a positive result: Be clear about the outcome we want to achieve. Identify the trade-offs between the potential options.

Detailed explanation-4: -: a giving up of one thing in return for another : exchange. trade off transitive verb.