tradeoff is loosely defined as any situation where making one choice means losing something else, usually forgoing a benefit or opportunity. We experience tradeoffs in zero-sum situations, when a plus in one area must be a negative in another.
Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. The idea of opportunity costs is a major concept in economics.
marginal thinking requires decision-makers to evaluate whether the benefit of one more unit of something is greater than its cost. This can be quite challenging, but understanding how to analyze decisions at the margin is essential to becoming a good economist.
Economic incentives are financial motivations for people to take certain actions.
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Explanation:
tradeoff is loosely defined as any situation where making one choice means losing something else, usually forgoing a benefit or opportunity. We experience tradeoffs in zero-sum situations, when a plus in one area must be a negative in another.
Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. The idea of opportunity costs is a major concept in economics.
marginal thinking requires decision-makers to evaluate whether the benefit of one more unit of something is greater than its cost. This can be quite challenging, but understanding how to analyze decisions at the margin is essential to becoming a good economist.
Economic incentives are financial motivations for people to take certain actions.
if my answer is helpful just click the heart and star sign below.↓
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