A tradeoff situation is known as a choice that an individual chose by giving up something else based on that choice. Let’s understand the same with an example:
In your coming weekend, you have a choice to sit back at home and relax or go with your family for a dinner program. Of course you cannot pursue both the activities. So let’s say you consider the first option of relaxing at home. So one can say that you faced a tradeoff situation between the two choices and you chose to sit back at home where you could have gone for dinner. So basically, tradeoff choice is the scarcity of something that leads an individual to choose from either of the options.
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Links of Next Macroeconomics Topics:-
- Making a Rational Choice
- Benefit What You Gain
- Cost What You Must Give Up
- How Much Choosing At the Margin
- Choices Respond To Incentives
- Economics as Social Science And Policy Tool
- Graph Used In Economic Model
- Economic Problem
- Market Equilibrium
- Employment and Unemployment
- Measuring GDP and Economic Growth
- Economic Growth Macroeconomics
- Policies for Achieving Faster Growth
- The Exchange Rate and the Balance of Payments
- The Dollar and Carry Trade
- Expenditure Multiplier Know the Keynesian Model
