Answer:
Governments have to make more trade-offs when economic times are hard because every want you made will be executed by providing something else to full fill your that want means people pick something over something to full fill their want. this concept is known as the opportunity cost.
Step-by-step explanation:
- The concept of opportunity cost has an essential place in the economic theory. The concept of opportunity cost is based on the concept of availability of factors of production which are scarce and versatile.
- As you all know our wants are unlimited but to satisfy these unlimited wants we have very limited means but to satisfy these wants we are capable of alternative uses.
- Opportunity cost is the gain dropped when one choice is selected over another.