The Statement That "There Is No Such Thing as a Free

question 97

Multiple Choice

The statement that "there is no such thing as a free lunch" means:

• A) there are no tradeoffs between economic goals.
• B) any production requires the use of scarce resources, and thus the sacrifice of another alternative.
• C) choices need not be made in rational behavior.
• D) scarcity only exists in poor societies.

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Definitions:

Confidence Level

The probability that a confidence interval contains the true population parameter.

Population Standard Deviation

A measure of the dispersion or variability of a population dataset, quantifying how much the members deviate from the population mean.

Mean Annual Return

The average return earned by an investment over a specific number of years, expressed on an annual basis.

Bond Funds

Mutual funds that invest primarily in bonds or other types of debt securities.