AP Microeconomics

Category - Microeconomics

Which of the following is the correct term for the simple act of giving one thing up for another?
  1. Opportunity cost
  2. Profit motive
  3. Trade-off
  4. Command
Explanation
Answer - C - Trade-off is the correct term for the simple act of giving one thing up for another.

Key Takeaway: Remember not to confuse trade-off with “opportunity cost,” which is often used in tandem with the term “trade-off.” Opportunity cost refers to the concrete value of what you are giving up in the trade off (often in terms of time or money).
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