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.

---

Definitions:

Tax Loss Carryovers

Provisions that allow businesses or individuals to use their current losses to offset future profits or income for tax purposes, potentially reducing future tax liabilities.

Tax Rate

The percentage of an individual's or corporation's income taken as tax.

Leasing NET Advantage

An analysis to determine the economic benefit or cost of leasing an asset compared to purchasing it outright, considering tax implications and other factors.

Straight-Line Depreciation

A technique for distributing the expense of a tangible asset uniformly throughout its lifespan.