Question

Which of the following are trade-offs faced by a family deciding whether to buy a new car?

Check all that apply:
O An increase in the family's car payment means the family will be unable to afford a vacation.
O The vehicle is available in several colors.
O A newer model offers better protection and functions but is more expensive than an older model.

Answer 1

- An increase in the family's car payment means the family will be unable to afford a vacation.

- A newer model offers better protection and functions but is more expensive than an older model.

Step-by-step explanation:

A trade off is synonymous to opportunity cost. It occurs when one forgoes a best alternative when they chose another. In this case, if this family chooses to buy a new car, you answer the question by looking at the next best thing they are giving up. That could be a vacation; they may not afford it since they would spend the money to buy the car. Additionally, a new car has new parts and is safer than an old car but it costs more; that's also a trade-off.