Question

trade - offs and opportunity costs are closely related topics. ____ exists when a decision - maker has to choose a course of action that prevents him or her from being able to take another course of action, but ____ explains what you give up when you choose to buy a new pair of shoes instead of attending a concert.
a trade - off, an opportunity cost
an opportunity cost, a trade - off

Explanation:

A trade - off occurs when a decision - maker has to choose one action over another, meaning they can't take the other action. Opportunity cost is the value of the next - best alternative that is given up when a choice is made. In the example of choosing to buy shoes instead of attending a concert, the thing given up (the concert experience) is the opportunity cost, and the fact that you have to choose between buying shoes and attending the concert is a trade - off. So the first blank should be "A trade - off" and the second blank should be "an opportunity cost".

Answer:

A. A trade - off, an opportunity cost