Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The opportunity cost of choosing one option over another
B
The total cost of all available options
C
The guarantee of maximum utility from all choices
D
The balance of supply and demand in a market
Understanding the Answer
Let's break down why this is correct
Answer
In economics, a 'trade-off' refers to the idea that when you choose one option, you have to give up something else. This happens because resources like time, money, and materials are limited, so you can't have everything you want. For example, if a student decides to spend their Saturday working a part-time job, they might earn money but miss out on hanging out with friends or studying for a test. The choice to work means they have to weigh the benefits of earning money against the fun and learning they might miss. Understanding trade-offs helps people make smarter decisions by recognizing what they are sacrificing for their choices.
Detailed Explanation
A trade-off happens when you choose one thing over another. Other options are incorrect because This answer suggests that a trade-off is about all costs; This option implies that a trade-off guarantees the best outcome.
Key Concepts
trade-offs
Topic
Fundamental Economic Choices
Difficulty
easy level question
Cognitive Level
understand
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