1.5.5 Business Choices Flashcards
1
Q
What is a trade-off?
A
A trade-off is when less of one is exchanged for more of another. It is also known as compromise.
2
Q
What is an opportunity cost?
A
An opportunity cost can be measured as the cost of foregoing the next best alternative.
3
Q
What are the problems of opportunity cost?
A
Land, labour and capital are limited resources but our wants are unlimited causing scarcity.
