A local government has a limited budget and is deciding whether to invest in a new public park or repair the existing roads. Which category best describes this situation regarding trade-offs?

In economics, trade-offs happen when you have to choose between two options because resources, like money, are limited. In this case, the local government must decide whether to spend its budget on building a new public park or fixing the existing roads. If they choose to invest in the park, the roads might remain in poor condition, which could lead to more accidents and traffic problems. On the other hand, if they prioritize road repairs, the community may miss out on a new recreational space for families and children. This situation clearly illustrates the trade-off between improving infrastructure and enhancing community leisure, showing that every choice has consequences.