If I am to look back on
one of the significant lessons that I learned and appreciate the most in my
college days that would be the one relating to the Principles of Economics by
Mankiw, specifically the principle “People
Face Trade-offs.”
Reason why? Simply
because this lesson is not just a plain principle that can be applied in Economics,
it’s also a lesson which we may apply in our own daily lives.
People Face Trade-offs was defined in Mankiw’s Principles of Economics as:
“To get one thing, you have to
give up something else. Making decisions requires trading off one goal against
another”.
True enough, making
decisions and choices in life requires us to trade-off one over the other.