Question

Economists state that every decision involves trade-offs. Economists measure and define these trade-offs as:
a.
productions possibilities curve.
c.
circular flow of economic activity.
b.
paradox of value.
d.
opportunity costs.

Answer 1

d. opportunity costs.

Explanation: A trade-off is the value of the next-best alternative you give up when you make a choice — that's the opportunity cost. (The production possibilities curve illustrates such trade-offs and their opportunity costs.)