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

Question

Quizplus · Accepted Answer

A tradeoff involves making a sacrifice in one area to gain in another, which is accurately described by option C. Points inside or outside a Production Possibility Frontier (PPF) represent inefficient and unattainable production points, respectively, not tradeoffs. Transactions at non-equilibrium prices do not inherently represent tradeoffs.

A Tradeoff Is