While opportunity cost is the cost of opting one course of action and foregoing another opportunity, a trade-off is the
course of action given up to perform the preferred course
of action.
What is trade-off and opportunity cost?
In economics, the term trade-off is often expressed as an opportunity cost, which is the most preferred possible alternative. 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.
What is the difference between a tradeoff and opportunity cost quizlet?
The difference between trade offs and opportunity cost is that
a trade-off is all the resources that are lost when a consumer makes a choice
. An opportunity cost is the most desirable opportunity given up when a consumer makes a choice. You just studied 8 terms!
What are some examples of 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
.
What do you mean by trade-off?
1 :
a balancing of factors all of which are not attainable at the same time the education
versus experience trade-off which governs personnel practices— H. S. White. 2 : a giving up of one thing in return for another : exchange. Other Words from trade-off Synonyms Learn More About trade-off.
What is an example of opportunity cost in your life?
Examples of Opportunity Cost.
Someone gives up going to see a movie to study for a test in order to get a good grade
. The opportunity cost is the cost of the movie and the enjoyment of seeing it. At the ice cream parlor, you have to choose between rocky road and strawberry.
What is another word for trade-off?
The exchange of one thing for another.
exchange
.
swap
.
trade
.
commutation
.
What is opportunity cost simple words?
How is opportunity cost defined in everyday life? “
Opportunity cost is the value of the next-best alternative when a decision is made; it's what is given up
,” explains Andrea Caceres-Santamaria, senior economic education specialist at the St. Louis Fed, in a recent Page One Economics: Money and Missed Opportunities.
Economics Content Standards:
Whenever a choice is made, something is given up. The opportunity cost of a choice is
the value of the best alternative given up
. Choices involve trading off the expected value of one opportunity against the expected value of its best alternative.
Why is opportunity cost important when you make choices quizlet?
Opportunity cost is the most desirable alternative given up as the result of a decision. It is important because
it creates opportunities and variation in the economy
.
What are three examples of important trade-offs that you face in your life?
- after opening the eye at first and of deciding that this world is our rival or a friend.
- choosing the streams English or commerce or Science.
- death as the trade off that we have to face in our life.
What is the classic example of a trade-off?
A classic example is the
trade-off between speed and stamina among species of animals
(e.g., cats versus dogs) and among Olympic athletes (e.g., the best sprinters are not the best marathoners).
What does a opportunity cost cause a person to lose?
What does an opportunity cost cause a person to lose?
Opportunity to buy something
, because you already spent your money on something else.
What is the opportunity cost of a decision?
The opportunity cost (also called an implicit cost) of a decision is
the value of what you will lose or miss out on when choosing one possibility over another
.
Is a trade-off between?
a situation in which you balance two opposing situations or qualities: There is a trade-off
between doing the job accurately and doing it quickly
. She said that she'd had to make a trade-off between her job and her family.
What is a trade-off give at least one example?
Frequency: The definition of trade off is an exchange where you give up one thing in order to get something else that you also desire. An example of a trade off is
when you have to put up with a half hour commute in order to make more money
.
