Every economic decision has a consequence or tradeoff.
When individuals or entities make economic decisions, they must weigh the costs and benefits of their choices. This means that choosing one option often comes at the expense of not being able to choose another. For example, if you decide to spend your savings on a vacation, you may be sacrificing the opportunity to invest that money for future gains. In economics, this tradeoff reflects the simple truth that resources are limited, and every choice has implications. Understanding this concept helps people make informed decisions, recognizing not just the benefits of their choices but also what they give up by not pursuing alternative options.