The Assertion That "There Is No Free Lunch" Means

question 106

Multiple Choice

The assertion that "There is no free lunch" means:

• A)there are always tradeoffs between economic goals.
• B)all production involves the use of scarce resources and thus the sacrifice of alternative goods.
• C)marginal analysis is not used in economic reasoning.
• D)choices do not need be made if behaviour is rational.

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Definitions:

Compounded Monthly

A method of calculating interest where the earned interest is added to the principal at the end of each month, resulting in interest earned on interest in subsequent months.

Calendar Quarter

A period of three consecutive months within a calendar year used for financial and business reporting.

Compounded Monthly

A method of calculating interest where interest is added to the principal balance of an investment or loan once a month.

Future Value

The value of an investment or asset at a specified date in the future, taking into account factors such as interest rates or earnings.