What Do Economists Illustrate When They Use the Phrase "There

question 170

Multiple Choice

What do economists illustrate when they use the phrase "There is no such thing as a free lunch"?

• A)how inflation increases prices
• B)that to get one thing, we must give up something else
• C)that nothing is free in a market economy
• D)that if something looks too good to be true, it probably is

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Definitions:

Partnership

A legally recognized arrangement in which two or more persons co-manage a business and distribute its profits among themselves.

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business.

Bankruptcy

A legal status of a person or entity that cannot repay debts to creditors and seeks relief through court proceedings.

Small Businesses

Enterprises characterized by smaller scale operations, fewer employees, and less revenue compared to larger corporations.