Date: 11/3/2021

Class: Macroeconomics- HQ9-GE02 Group: 9

Group members have contributed to this assignment:
Name Student ID
1. Cao Lê Tuấn Kiệt 050609211994
2. Nguyễn Mẫn Minh 050609210760
3. Trần Quốc Thắng 050609211292
4. Phạm Quang Vinh 050609211707
5. Lê Nguyễn Thùy Vy 050609211712
Assignment: Analyze “Principle 1: People face trade-off”
“Principle 2: The cost of something is what you give up to get it”

Discussion result:
- “Trade-off” means a situation in which you accept something you do not like or want in
order to have something that you want. (Cambridge dictionary)

- “People face trade-off” means spend a certain resource (energy, property, time, or
whatsoever resource you have) for another resource that you want.

- The group agrees with the principle because

*Argument 1: We often have to give up

what we enjoy to obtain something we desire. Trading
one goal for another is part of the decision-making
process. In another way: “There is no such thing as a
free lunch!” (proverb)

 We have less and require more, "trade-offs"

are frequently used as a means of surviving in
life. We must always examine the trade-off
between what we have and what we desire and
need to improve our quality of life.

 Scarcity occurs when human requirements

outnumber a community's or region's limited resources. Scarcity also indicates that with a
limited quantity of resources, various social goals cannot be pursued at the same time,
resulting in trade-offs.

- For example: The trade-off of Vietnam in the covid epidemic

 GDP did not fall by 1-2% or even 3% as projected as a result of social distancing
measures; instead, GDP fell by 6.17% in the third quarter of 2021 compared to the same period
last year. This is the steepest drop since Vietnam's quarterly GDP was computed and released in
2000. However, thanks to social distancing measures,the number of infections and deaths is
significantly declining, returning to the new normal. 

When Vietnam executes an epidemic-prevention approach, it helps to reduce infection

rates while also causing a more serious economic loss by halting production, business operations,
and supply and distribution chains. Containment and embargo efforts have resulted in a state of
stagnation. This is a dilemma that Vietnam, like other countries, must accept as a trade-off. The
above example demonstrates how Vietnam sacrifices economic progress to combat the
pandemic, as Prime Minister Pham Minh Chinh stated: "Sacrificing a portion of economic
growth, prioritizing people's health”
Principle 2: The Cost of  Something is What You Give Up to Get It
- “The Cost” means in common usage, is the monetary value of goods and services that
producers and consumers purchase. In a basic economic sense, the cost is the measure of the
alternative opportunities foregone in the choice of one good or activity over others. This cost is
usually referred to as the opportunity cost. 

- “Opportunity cost” means In economic terms,

the opportunity cost indicates what must be given up to
obtain something that’s desired. There is an impressive
adage, "If you don't lose anything, you won't get anything".
Exemplify: if you spend your money on video games,
you won't be able to spend it on movies, and if you choose
to crush on one person, you won't be able to crush on
anyone else. In short, opportunity costs are all around us.
In conclusion, the concept of principle number 2 conveys
to us: To gain something, you must give up something, and
you have to account for opportunity costs in your calculations.
- We completely agree with the principle because

*Argument 1: Because no one has endless resources,

every firm attempts to make the most effective use of its
resources. 

*Argument 2: When making any type of decision in this

day and age, constantly consider opportunity cost and gain,
since "there is no such thing as a free lunch."

- For example:

Ex 1: A player attends baseball training to be a better player

instead of taking a vacation. The opportunity cost was the
vacation.

Ex 2: A student is faced with a choice to either study for a final

or watch a movie. We know what the right choice is, however
the student chooses to watch that movie. The opportunity cost
would result in a bad grade on the final and overall course.

In summary, principle number two is critical in today's economy as well as daily life, and people
must be aware of it since, in order to take intelligent action, we must first have a clear thought.