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
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Definition of Trade-Offs in Economics
Trade-Off Examples
Additional Activities
Examples of Trade-Offs
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Trade-Offs in Economics: Definition & Examples
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Trade-Offs in Economics: Definition & Examples
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Content: For example, when you buy the name brand cereal, you are making a trade-off against purchasing the generic brand and using the additional savings to buy another item you may not have been able to afford otherwise. Only you can reason whether sacrificing a name brand item to buy an additional snack is worth it to you. Lesson Summary
In economics, the term trade-off is often expressed as opportunity cost. A trade-off involves a sacrifice that must be made to obtain a desired product or experience. Understanding the trade-off for every decision you make helps ensure that you are using your resources (whether it's time, money or energy) wisely. Next time you decide to spend some extra money on a fancy dinner, think about the other things you could do with that money. Evaluating the trade-offs will help you feel good about your final decision. Learning Outcomes
Once you are finished, you should be able to explain an economic trade-off and illustrate the concept with a few real-world examples. To unlock this lesson you must be a Study.com Member. Create your account
Additional Activities
Examples of Trade-Offs
Does each of the following scenarios describe an economic trade-off?