An actor can only choose one action with a given amount of time.  This is known as opportunity cost.  There are consequences of the action chosen.  It shouldn’t just be a superficial choice.  The actor must determine if those consequences will justify the action.  That can then be called tradeoffs.  People can be locked in their home to slow the spread of a virus.  The tradeoff, this will lead to physical and psychological issues. 

Every action has a trade within.  Just like Bastiat’s broken window.  The shopkeeper made the trade between the window and shoes.  He couldn’t have both.  He had to buy one or the other.  He referred to this as the seen and the unseen.  Referring to it this way is correct, but it’s also a trade.  He traded his new shoes for a new window.  Now, he doesn’t have the shoes, but he does have a new window.  He determined the window was more valuable.

Choosing between two actions is the opportunity.  Tradeoffs are the pros and cons of the action.  To expand on the example in the beginning, locking people in their homes can save lives.  However, this is just a superficial view of the situation.  Being locked indoors will cause physical and psychological issues.  In reality, no lives are saved.  Lives are simply being traded.  Should people die of a virus or other issues?

Choosing between actions must compel the actor to consider the tradeoffs.  Failure to consider the tradeoffs can lead to disastrous consequences.  A decision without viewing the tradeoffs is a poorly thought out one.  Failure to view tradeoffs doesn’t just make a bad entrepreneur.  Viewing tradeoffs are for every single person.  Tradeoffs may not be able to be measured and they may not appear until the future or are unseen. 

The shopkeeper isn’t just getting a new window.  He’s trading shoes for a window.  Locking people down isn’t saving lives, but trading them.  Tradeoffs may be ignored intentionally to mislead you.  It’ll be much more difficult to fool you if you can see the tradeoffs before the action happens.  You’ll be more successful in every endeavor in your life.  There’s more to an action than choosing between opportunities.