Homonym: Trade-Offs (Compromise)
Trade-offs refer to the concept of giving up one thing in order to gain something else. In decision-making, individuals and organizations often face choices where selecting one option means sacrificing another. For example, if a person decides to spend money on a new phone, they may have to forgo a weekend trip.
In economics, trade-offs are crucial for understanding resource allocation. When a government chooses to invest in education, it may have less funding available for healthcare. This illustrates the need to balance competing priorities, as every choice has potential benefits and costs associated with it.