Figure 1.3

-The giving up of a good or activity in order to obtain some other good or activity is called:

Question

Figure 1.3
 
-The giving up of a good or activity in order to obtain some other good or activity is called:

Quizplus · Accepted Answer

The giving up of a good or activity in order to obtain some other good or activity is referred to as a tradeoff. A cost analysis involves the evaluation of the costs of a specific action or decision, while a random choice is a decision made without any specific criteria or rationale. An opportunity cost is the value of the next best alternative that must be given up in order to pursue a certain action or decision. A sunk cost is a cost that has already been incurred and cannot be recovered. Therefore, the best choice is A) a tradeoff.

Figure 1.3 -The Giving Up of a Good or Activity in Order