Question

What is a trade-off?

A.)decreasing the amount of resources spent on all wants to reduce the total costs in future
B.)replacing one resource with another resource to satisfy a want
C.)organizing the use of a resource in a manner that fulfills all wants
D.)reducing the amount of resources spent on one want to spend more on another want

Answer 1

Its D. reducing the amount of resources spent on one want to spend more on another want (100% correct; just took quiz and got all answers right)

Answer 2

D.)reducing the amount of resources spent on one want to spend more on another want

Step-by-step explanation:

A trade off is a situation where an economic agent has to decide between two options he wants. This is a concept widely used in economic theory, for example when the government will use monetary policy. If monetary policy is expansionary, it may increase the employment rate but cause inflation. If the government pursues a contractionary monetary policy, it may lower inflation but increase the unemployment rate. Then there is a trade-off in the government's choice between inflation and unemployment. Monetary policy will then be administered according to the choice the government makes.