Posted by Anonymous on .
Describe why every decision involves trade-off.
Can you please explain it to me.I don't get it!!!
AP Economics -
Every time a person chooses between two or more things, s/he gives up the other things. That's the tradeoff.
Consider the simplest of decisions.
If I decide to eat a hamburger rather than a pizza, I miss the taste of the pizza. That's a trade-off.
If I decide to stay online talking with friends rather than studying for a test, I'm trading a good test grade for pleasure.
If I decide to spend $100 on a luxury item, I'm trading buying other things instead of the one luxury item.