List two examples of tradeoffs Explain brieflySolutionTradeo

List two examples of trade-offs. Explain briefly.

Solution

Trade-offs are considered as opporunity cost as one has to select one option and forgone the another option.

Example: You have $5000, you have two options , one is to invest in shares and another is to put it in bank and get interest. so there is tradeoff between invest in shares or put it in bank.

Example: Retire today or continue working for a few more years is the another example. If you retire today, you will get leisure in forgone of the money that you might earn by working more number of years.