Title: Trade-Offs in Economics: Definition & Examples - Business Class [2021 Video] | Study.com
Headings: Trade-Offs in Economics: Definition & Examples
Trade-Offs in Economics: Definition & Examples
Instructor
Expert Contributor
Definition of Trade-Offs in Economics
Trade-Off Examples
Additional Activities
Examples of Trade-Offs
Register to view this lesson
Are you a student or a teacher?
Trade-Offs in Economics: Definition & Examples
Start today. Try it now
Ch 1. The Dynamic Business Environment:...
Ch 2. Homework Help for Social Responsibility...
Ch 3. Economics and Business: Homework Help
Trade-Offs in Economics: Definition & Examples
Related Study Materials

Content: Let's say you really want to go to the bar with your friends. You will likely spend $40 that evening and get home at 1 AM. The first trade-off might be the four hours you are giving up that you could use to perhaps finish your term paper. Another potential trade-off might be the $40 that you need to fill up your car with gas. Finally, you know that you might wake up with a headache and most likely will miss your Saturday morning workout that you look forward to. Who would have thought you were giving up so much to go out for a few hours? The conclusion isn't that you should skip going out with your friends, but rather that you should evaluate the other alternatives, so you can make the smartest decision possible for you. If you're a business owner, you make a trade-off every time you buy new equipment or a company vehicle. The owner evaluates how much money he or she is going to spend and likely how much revenue or sales will be earned as a result of that investment. What is the trade-off?