Give two examples of potential trade-offs of a high real GDP per capita

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16-06-2022
Business

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Give two examples of potential trade-offs of a high real GDP per capita

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Baraq Baraq · Answer 1 · 2022-06-20T17:27:00+02:00

"Trade-off" is used in economics to mean the fact that budgeting inevitably involves letting go some of X to get more of Y. Read below about the examples of potential trade-offs.

What are the examples of potential trade-offs of a high real GDP per capita?

The following are the examples of potential trade-offs of a high real GDP per capita:

Somebody giving up the intent to see a movie to reading for a test in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it.
A business owns its building. If the organisation moves, the building could be rented to another. The opportunity cost of staying there is the amount of rent the organization would get.

Therefore, the correct answer is as given above

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