What do economists mean when they say that “there is no free lunch”? Give another example to which this statement applies
Please provide the best answer for the statement.
Anything of any value that is offered for “free” still has a cost. Economists refer to this sacrifice as an opportunity cost. In this case, the resources that were used to provide the free lunch could have been put to an alternative use. The opportunity cost is the next best alternative use for those resources. As another example, consider the case of a bank that offers you a “free” sports bag to open an account at the bank. The bag may be free to you as a new bank customer, but there is still a cost paid by the bank in the form of resources that could have been put to alternative uses.
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Briefly and concisely define the following concepts and terms
a. marginal social cost b. detrimental externalities c. free-rider problem d. cost disease e. "defective telescopic faculty"
When a $1,000 check written on the Chase Bank is deposited in an account at the Bank of America the:
a. Liabilities of Chase rise by $1,000. b. Reserves of Chase increase by $1,000. c. Liabilities of the Bank of America fall by $1,000. d. Reserves of the Bank of America increase by $1,000. e. All the above.
Advocates of a tax on soda and other sugary drinks argue that such a tax
a. may encourage better nutrition. b. will protect our future selves from the long run negative effects of consuming these drinks. c. is needed because people tend to behave inconsistently over time. d. All of the above are correct.
Refer to the above graph. The shift of the budget line from CD to AB is consistent with:
A. an increase in the price of Good 1 and no change in the price of Good 2. B. a decrease in money income. C. an increase in money income. D. a decrease in the price of Good 2 and no change in the price of Good 1.