Final answer:
Tradeoffs refer to sacrifices or alternatives given up to gain something else. It involves considering the opportunity cost and making choices between different options. Economists believe in embracing trade gains and addressing costs and tradeoffs with other policy tools.
Step-by-step explanation:
Tradeoffs refer to the sacrifices or alternatives that are given up in order to gain something else. In economics, tradeoffs occur when one benefit is given up to obtain another. For example, if you choose to go to the movies instead of seeing a concert, the tradeoff is giving up the chance to attend the concert.
Tradeoffs can involve choosing between things that can be easily measured, like money or time, as well as values that are not easily measured, like enjoyment or personal preference. When making tradeoffs, it is important to consider the opportunity cost, which is the most desirable alternative that is given up in the decision-making process.
The common belief among economists is to embrace the gains from trade and then deal with the costs and tradeoffs using other policy tools, rather than cutting off trade to avoid the costs and tradeoffs altogether.