Trade-off
Definition
A trade-off refers to the decision-making process of giving up one thing in order to gain something else. It involves making choices because resources are limited and individuals or societies cannot have everything they want.
Related terms
Opportunity Cost: This term refers to the value of the next best alternative that is forgone when making a choice.
Production Possibilities Frontier (PPF): This term refers to a graphical representation showing all possible combinations of goods and services that an economy can produce given its resources and technology.
Marginal Analysis: This term refers to examining the additional benefits versus costs when making decisions, considering small incremental changes.
"Trade-off" appears in:
Subjects (3)
AP Human Geography
AP Microeconomics
AP US Government
Study guides (1)
AP Macroeconomics - 5.2 The Phillips Curve
Practice Questions (1)
In the long run, is there a trade-off between inflation and unemployment?
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About Us
About Fiveable
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Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Cram Events
Merch Shop
Crisis Text Line
Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.