Tradeoffs in economic decisions from "summary" of Economic Facts and Fallacies by Thomas Sowell
In making economic decisions, individuals and societies are often faced with the reality of tradeoffs. This means that in order to obtain more of one thing, something else must be sacrificed. These tradeoffs are inherent in all economic decisions, whether at the individual level or at the level of businesses and governments. For example, when a person decides to spend money on a new car, they are making a tradeoff between that car and other possible uses of that money, such as saving for retirement or going on vacation. Similarly, when a government chooses to allocate resources towards healthcare, it is making a tradeoff with other potential areas of spending, such as education or infrastructure. One of the key principles of economics is that resources are scarce, and therefore mus...
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