Question

Trade-offs are alternatives that must be given up when one choice is made rather than another.

Question 1 options:
True
False

Answer 1

True

Step-by-step explanation:

The terms trade-off describes the sacrifice that has to be made to acquire a particular good or service. A person will let go of the opportunity to buy product X because they have chosen to enjoy a service Y. Product X is the trade-off

Some economists will use the term trade-off to mean opportunity cost. In both situations, a sacrifice of the second-best alternative has to be made to acquire the chosen item.