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
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Examples of Trade-Offs
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Trade-Offs in Economics: Definition & Examples
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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
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Content: 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? It may be the opportunity to take the money he or she would have spent and put it in a CD at the bank making five percent interest. It may be the opportunity of going on a vacation with his or her family. These are both trade-offs the owner may consider before he or she buys that new piece of equipment. As a grocery store shopper, you make a trade-off every time you put an item in your cart. Wow, those are a lot of trade-offs!