Question

What is Trade -off in economics?

Answer 1

Trade-off in economics refers to the decision-making process of sacrificing one benefit or advantage in exchange for another that is deemed more important or valuable. It involves weighing the benefits and costs of two or more choices and choosing the one that provides the greatest benefit or utility. Trade-offs are necessary because resources are limited, and therefore, we cannot have everything we want or need. For instance, choosing to spend money on a vacation may require sacrificing some other purchases or savings that could have been made during that period.