Every decision made by everyone either individually or collectively involves choices, further getting more of a particular good implies getting less of another. The concept of trade-offs pertain not only individuals but also families, communities, societies and corporations. The decision made is normally arrived at after keenly carrying out a cost-benefit analysis of our choices (Business Economics, 2010). Consequently, they in the end give up opportunity cost to acquire something. Due to this it is assumed that individuals think critically to maximize on the gains as compared to the related costs. Lastly, it is assumed that all individuals react to incentives such as changes in prices. There are various ways in which communities and individuals determine basic trade-offs using certain factors such as reduced healthcare services.
Free and reduced healthcare services means that a lot of money is being cut down from other sectors to finance the healthcare sector. First of all, when it comes to which goods and services to be produced, my community results to producing those those lead to high yields and highly profitable ones. This is increase returns to finance the healthcare sectors. Less productive goods and services are avoided.
Secondly the mode of producing this goods and services is also appropriately chosen. My community results to using local and affordable but effective technology to cut down on the costs incurred to produce them using expensive technology. Labor used for producing the goods and services is also obtained locally and at affordable wage rate (Tobak, 2000). Some members of the community are also asked to offer their expertise on voluntary basis to ensure that the costs incurred are fully reduced. Efficiency is also an area that is enhanced in production to avoid wastage of the available resources.
You are About to Start Earning with EssaysProfessors
Tell your friends about our service and earn bonuses from their ordersEarn Now
Lastly, in determining who gets the produced goods and services, my community ensures that the buyers who want to get them at rock bottom prices are denied. Markets whose transport and other related expenses are relatively high are avoided especially when it involves the community takes them to the market. This is a way of cutting down the expenses to increase the funding for healthcare sector (Arellano, 2005).
To sum up the whole discussion, it has to be emphasized that trade-offs are inevitable in day to day operations of every individual as far as decision making is concerned. To come up with a given choice, one has to give up the other but after critically doing the cost-benefit analysis.
Include FREE Plagiarism Report (on demand)$15
Include FREE Bibliography/Reference Page$15
Include FREE Revision on demand$30
Include FREE E-mail Delivery$10
Include FREE Formatting$5
Include FREE Outline$5