According to the Text,there Is No Such Thing as a Free

question 110

Multiple Choice

According to the text,there is no such thing as a free lunch because

• A)The producer must charge something to cover the cost of production.
• B)Resources used to produce the lunch could be used to produce other goods and services.
• C)The government must raise taxes to pay for the lunches.
• D)No one would pay for lunch anymore if they could get it for free.

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Definitions:

Discount Rate

The discount rate that is employed during discounted cash flow evaluation to ascertain the present valuation of future expected cash flows.

Simple Rate of Return

A financial metric that calculates the gain or loss of an investment over a specific period as a percentage of the investment's initial cost.

Cash Outflows

Payments or expenditures made by a business or individual, resulting in a decrease in cash balance.

Useful Life

The estimated duration of time that an asset is expected to be useful in operations, contributing to the company's income generation.