Which of the following are trade-offs faced by a family deciding whether to buy a new car?

Check all that apply:

O An increase in the family's car payment means the family will be unable to afford a vacation.

O The vehicle is available in several colors.

O A newer model offers better protection and functions but is more expensive than an older model.

Question

Business

Annie Castillo

3 March, 04:00

Which of the following are trade-offs faced by a family deciding whether to buy a new car?

Check all that apply:

O An increase in the family's car payment means the family will be unable to afford a vacation.

O The vehicle is available in several colors.

O A newer model offers better protection and functions but is more expensive than an older model.

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Answers (1)

Know the Answer?

Jovan · Answer 1

- An increase in the family's car payment means the family will be unable to afford a vacation.

- A newer model offers better protection and functions but is more expensive than an older model.

Explanation:

A trade off is synonymous to opportunity cost. It occurs when one forgoes a best alternative when they chose another. In this case, if this family chooses to buy a new car, you answer the question by looking at the next best thing they are giving up. That could be a vacation; they may not afford it since they would spend the money to buy the car. Additionally, a new car has new parts and is safer than an old car but it costs more; that's also a trade-off.