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

question 52

Multiple Choice

The expression, "There's no such thing as a free lunch," implies that

• A) everyone has to pay for his own lunch.
• B) the person consuming a good must always pay for it.
• C) opportunity costs are incurred when resources are used to produce goods and services.
• D) no one has time for a good lunch anymore.

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Definitions:

Systematic Risk

It represents the risk inherent to the entire market or market segment, often influenced by factors such as economic, political, or social changes.

Treasury Bills

Short-term government securities issued at a discount from the par value and paying no interest, maturing in one year or less, representing a secure, liquid investment.

Market Index Fund

A type of mutual fund or ETF designed to replicate the performance of a specific market index.

Beta

A measure of a stock's volatility in relation to the overall market, indicating the stock's level of risk compared to the market average.