The Expression "There's No Such Thing as a Free Lunch

question 43

Multiple Choice

The expression "There's no such thing as a free lunch" means

• A) if one person gains, someone else must lose.
• B) each person must pay for exactly what he or she receives.
• C) the use of resources to produce a good has an opportunity cost because of scarcity.
• D) you cannot have a free lunch at the expense of someone else.

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Definitions:

Unperfected Security Interests

A claim or lien on a debtor's property that has not met the legal requirements for enforceability against other creditors or in bankruptcy.

Secured Parties

Creditors that hold an interest in a debtor's collateral as security for the repayment of a loan or obligation.

Collateral

Collateral that a borrower offers to a lender to secure a loan or credit, which the lender can take possession of if the borrower fails to meet the repayment terms.

Perfection

The process or action of making something completely free from faults or as close to it as possible.