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 trade-off in economy?
The term “trade-off” is employed in economics to refer to the fact that budgeting inevitably involves sacrificing some of X to get more of Y . With a fixed amount of savings, one can buy a car or take an expensive vacation, but not both. The car can be “traded off” for the vacation or vice versa.
What is a trade-off give at least one example?
What is a trade-off? Give at least one example. A trade-off is an exchange in which one benefit is given up in order to obtain another. Example: a material may be used to build a house because it is attractive to customers even though it is not as durable.
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 is an example of a tradeoff in government?
For example, if the government attempts to increase AD by implementing expansionary fiscal policy, we will get an increase in real GDP and therefore lower unemployment but at the cost of higher inflation . This is an example of a trade-off between economic growth + unemployment vs inflation.
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 are some examples of trade?
Trade is defined as the general marketplace of buying and selling goods, the way you make a living or the act of exchanging or buying and selling something. An example of trade is the tea trade where tea is imported from China and purchased in the US. An example of trade is when you work in sales .
What is the importance of trade-off in economics?
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.
What is the difference between trade-off and opportunity cost in economics?
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 .
Which kind of economy is most common today?
The mixed economy definition is an economy where both the private market and the government control the factors of production. It is the most common form of economy that exists in the world today.
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 another word for trade-off?
agreement . arrangement . compensation . contract .
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 are 3 types of trade-offs?
- Money vs Time. 90% of all jobs and promotions are a trade-off between money earned and the time required. ...
- Position vs Accountability. ...
- Job security vs Opportunity. ...
- Travel vs Predictability. ...
- Role vs People. ...
- Brand vs Scope. ...
- Relationships vs Numbers.
What is a tradeoff in government?
Trade-off. When choices are made (collectively or by an individual) to accept having less of one thing in order to get more of something else , the results are called trade-offs.
What is the definition of wants in economics?
In economics, a want is something that is desired . ... It is said that every person has unlimited wants, but limited resources (economics is based on the assumption that only limited resources are available to us).
