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:

NPV

The calculation used to find the current value of future cash flows minus initial investments, which helps in evaluating the feasibility of investments or projects.

Credit Policy

The guidelines a company follows to determine creditworthiness, terms of credit, and how to collect owed money, affecting its trade credit and financing approaches.