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:

Restricted Fund Balance

The portion of a fund's balance that is limited in use by external donors, grant conditions, or legal restrictions.

Assigned Fund Balance

Part of a governmental entity's fund balance that is earmarked for a specific use but can be changed by the entity's management.

Private Purpose Trust Fund

A type of trust fund in the public sector meant to benefit specific individuals, private organizations, or other governments.

Permanent Fund

A fund established to generate income for an organization without spending the principal amount, often used by nonprofit entities and governments.