Trade-offs
What Trade-offs means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Trade-offs
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Reference: Pearson Edexcel
Situations where satisfying one group's objectives makes it impossible to satisfy another's, so businesses must manage these competing demands.
The choices economic agents face because resources are scarce, weighing the value of alternatives given up.
Balancing competing interests, where satisfying one group requires compromising the objectives of another.
Occur when resources are limited, forcing economic agents to choose between competing alternatives.
Topics that use Trade-offs
- Ethical issues (Pearson Edexcel A-Level)
- Productive and allocative efficiency (Pearson Edexcel A-Level)
- Stakeholders (economic agents) and their objectives (Pearson Edexcel A-Level)
- The economic problem (Pearson Edexcel A-Level)
Related terms
- Economic agents
- Profit maximisation
- Stakeholders
- Trade-off
- Advertising Standards Authority (ASA)
- Allocative efficiency
- Competitive advantage
- Consumer preferences
Using Trade-offs in the exam
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