Why do people Tradeoff?
Tradeoff between the goods, services and consumptionand saving has always been a part of the human nature. Fromthe beginning, people tradeoff between different options, choicesand alternatives, in order to attain a particulargoal. Such can be seen from the people’s choice of either attending the grad school or doing a job to earn money.In addition, the particulartradeoffbetween spending them in the given situation as compared to saving it for later also devise the clear example of tradeoff, that people make , in order to attain the long term goals.
Since people do tradeoff, the question arises to understand the reason, people tradeoff between different options.One of the most authentic reason proposed by ( (Haque, 2012)), suggests that a person cannot have all the options covered in the given situation.For instance he/she cannot have a grad school and the job at the same time because it is not humanly possible.
Similarly, a person cannot spend a substantial amount of money on a particular luxury yet save for the rainy days or long term goalsin a limited salary. Part from thissuch tradeoff also depicts the principle of neoliberalism, which states that it is notabout the rich or poor when it comes to thetradeoff,in fact, it is part of life, since as human, the peopleare limited in terms of expertise,and level of work the can control and perform.
For example, if a person has to choose between completing the Grad degree or going out for the vacations falls in the sametime, he has to select one, since he cannot do both in the same time. It can be said, that time is the major constraint, whichrestricts the people to go beyondlimits.
It is due to the fact, that sincetime is limited to perform any particular task, one cannot escape it and thus it makes people to choose betweenthe two given options. In addition to this, according to ( (Goldfarb, 2017)), the people’s priority to differentaspect of life and the perspectivestowards life, also makes people to tradeoff between different options.For example, if a person wants to earn money, he may choose to invest in his skills ratherthanin grad schools, since it will get him a job more easily than the grad degree.However, in the other case, if the person wants to learn and get expose to the university, he may choose to opt for the university in order get the education rather than opting for the job.
According to ( (Frei, 2006)), there is tradeoff between different aspects of markets and sectors.Such can be seen from tradeoff between equality and efficiency.For example, if the economy is performingon high growth, there isa cleartradeoff between people paying more taxes and economy performing at faster ratio.So the government has to choose betweenimplying the hightaxes in order to boost economy or maintain the low taxes in order for the consumer to spend more, that may alsolead to economic growth.
Under theeconomics perspective, the term tradeoff refers to the opportunity cost, that one has to forgo in order to opt for the other opportunity.Such can be understood, that if a person hastwo opportunitiesat thesame time, he may choose or evaluate the value ofeachopportunity and forgo one opportunity in order to optfor the other…………………
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