Explain the statement "There is no such thing as a free lunch."
What will be an ideal response?
The statement means that even if there is no overtly explicit cost attached to an activity, there is always an implicit cost, or opportunity cost, involved with every transaction. All goods and services must be paid for by someone, so you do not get something for nothing.
You might also like to view...
Economists measure opportunity cost
A) as equal to the sum of all the sunk costs. B) only when it is on the margin. C) as the best thing given u
The Herfindahl-Hirschman Index will indicate that a contestable market is ________
A) a sequential market B) competitive C) uncompetitive D) a prisoners' dilemma
What do economists call the tendency of people at a higher wage rate to choose free time over work?
a. substitution effect b. income effect c. diversion theory d. leisure theory
In the above figure, if the price level is 110
A. total expenditures exceed total planned expenditures. B. total planned production equals total expenditures. C. total planned production exceeds total expenditures. D. total planned production is less than total expenditures.