In economics, the principle that “people face trade-offs” is a fundamental concept that underlies all economic decision-making. It states that every choice involves giving up something else, and that there is no such thing as a free lunch.
For example, if you choose to spend your money on a new car, you will have less money to spend on other things, such as food or entertainment. Or, if you choose to spend your time studying for an exam, you will have less time to spend with friends or family.
