Giving up one thing to get some of another is called what?

• A. Trade-offs
• B. Sales Taxes
• C. Telecommuters
• D. Trade Name

Answer: (A)

Giving up one thing to get another describes a trade-off. In running a business, resources like time, money, and effort are limited, so choosing one option usually means sacrificing something else. That sacrifice is exactly what a trade-off captures—you weigh what you gain against what you give up. Related idea, opportunity cost, is the value of the best alternative you forgo when you make a trade-off, helping you understand the true cost of a decision. The other terms don’t describe this concept: sales tax is a tax on purchases, telecommuters are people who work remotely, and a trade name is a brand name used in selling products.