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:

Discount Period

The time frame in which a discount is offered for early payment on goods or services, or the period before a financial instrument reaches maturity.

Full Settlement

A financial agreement where all claims or debts between parties are resolved by paying a single lump sum.

Discount Period

The timeframe in which a discount is offered for early payment of invoices, encouraging quicker payment from buyers.

Inventory Shrinkage

The loss of products between acquisition and sale, often due to theft, damage, or errors in counting.