Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
Question
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Chapter 1.2, Problem 2R
To determine

To explain: The opportunity cost of any trade-off.

Expert Solution & Answer
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Explanation of Solution

The economic choices made by people involve the exchange of one good or service for another. This exchange of one good or service for another is called a Trade-off.

The opportunity cost of any trade-off will be the most preferred possible alternative. In a trade-off, a person has to make a sacrifice of his good or service to get another commodity. For example, if a person has two options; to buy a computer or to buy a mobile phone. In this case, if the person buys (trade-off) the computer then the opportunity cost of the computer is the cost of the mobile phone.

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