Economists Use the Phrase "There Is No Such Thing as a Free

question 46

Multiple Choice

Economists use the phrase "There is no such thing as a free lunch," to illustrate the principle that

• A)inflation almost always results in higher prices over time.
• B)nothing is free in a market economy.
• C)making decisions requires trading off one goal against another.
• D)if something looks too good to be true, it probably is not worth pursuing.

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Definitions:

Back-Channel Communication

Verbal and non-verbal ways in which listeners let speakers know they are still listening.

Impression Management

The effort to control or influence the perceptions others have of us, often through the manipulation of information in social interactions.

Intimacy Equilibrium

The balance between the need for closeness and personal space in interpersonal relationships.

Credit Balance

The amount of money that a creditor owes to a debtor, reflecting payments exceeding charges on an account.