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

question 43

Multiple Choice

The expression "There's no such thing as a free lunch" means

• A) if one person gains, someone else must lose.
• B) each person must pay for exactly what he or she receives.
• C) the use of resources to produce a good has an opportunity cost because of scarcity.
• D) you cannot have a free lunch at the expense of someone else.

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Definitions:

Trading

The action or activity of buying and selling goods and services or financial instruments, often in financial markets.

Lenders

Individuals, institutions, or entities that provide funds to others with the expectation that the funds will be repaid, typically with interest.

Risk-Free Rate

The return on an investment with no risk of financial loss, often represented by the yield on government securities.

Earning Power

The ability of a business to generate net income consistently over time.