PRESENTATION OUTLINE
Definition
the exchange of one thing for another of more or less equal value, especially to effect a compromise.
A trade involves a sacrifice that must be made to obtain a certain product, service or experience, rather than others that could be made or obtained using the same required resources.
The idea of a tradeoff often implies a decision to be made with full comprehension of both the upside and downside of a particular choice
For a person going to a basketball game, their opportunity cost is the money and time expended, as compared with the alternative of watching a particular television program at home.
In cold climates, mittens serve well to keep the hands warm, but they do not allow the hands to function as well as do gloves.
The government has to decide whether to spend a billion dollars more on education or a billion more on defense.
