The four elements of trade-offs suggested by Marasco (2004) are scope, time, quality and resources illustrated as a pyramid . Kerzner (2006, p. 684) also introduces a number of factors affecting, or „forcing‟ the tradeoffs.
What do trade-offs include?
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 are the 3 basic trade-offs faced by a society?
Society faces three key trade-offs: what goods and services to produce, how to produce them, and who gets the goods and services .
What is considered a trade-off?
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.
What are the factors of trade-off?
Many factors affect the tradeoff environment within a particular country, including the availability of raw materials, a skilled labor force, machinery for producing a product, technology and capital , market rate to produce that product on a reasonable time scale, and so forth.
What is a good example of a trade-off?
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 is another word for trade-off?
agreement . arrangement . compensation . contract .
What is a trade-off give at least one example?
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 . noun.
How do you calculate trade-offs?
There is no specific calculation for a trade-off , so determining the trade-off in any situation is not always easy. When deciding between two or more courses of action, ranking the alternatives from top to bottom can make you feel more confident that you are picking the right one.
Reduce prices and create jobs . This is the ideal economic outcome expected from all businesses today, not only in the long run, but also in the short term. Generally, lower prices allow more consumers to consume goods or services.
Why do the people face trade-offs?
To get something you want, you have to give up something else you want. Scarce resources. Think of allocating your time or money. Societies face a tradeoff between more consumer goods (low taxes) and more public goods (defense, social programs) .
Why the nation can’t produce both 3 guns and 4 Butters?
For this reason, the nation cannot produce the combination of 3 guns and 4 butters since that would require more than 12 units of labor to achieve . It would be wasteful to produce the combination of 1 gun and 2 butters since that would leave 2 units of labor unused (unemployed). This is called productive inefficiency.
What does it mean to think at the margin?
It means to think about your next step forward. ... If you think at the margin, you are thinking about what the next or additional action means for you.
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.
Is trade-off and opportunity cost the same?
The opportunity cost of an economy investing resources in new capital goods is the production of consumer goods given up for today. A trade-off arises where having more of one thing potentially results in having less of another.
What are the trade offs and benefits of technology?
Abundance of food, health benefits, ease of information processing and access , great increases in mobility, and the financial gains that technology’s development brings about are among the key benefits. ...
