A tradeoff is
A) represented by a point inside a PPF.
B) a transaction at a price either above or below the equilibrium price.
C) represented by a point outside a PPF.
D) a constraint that requires giving up one thing to get another.

Question

Quizplus · Accepted Answer

A tradeoff involves making a decision to give up one thing in order to gain something else, often seen in the context of opportunity cost and decision-making in economics. Points inside or outside a PPF (Production Possibility Frontier) represent inefficient and unattainable production points, respectively, not tradeoffs. Transactions at non-equilibrium prices do not define tradeoffs.

A Tradeoff Is