Which Economic Concept Is the Closest Parallel to the Saying

question 71

Multiple Choice

Which economic concept is the closest parallel to the saying "There's no free lunch"?

• A)Specialization
• B)Unlimited wants
• C)Underutilization of resources
• D)Opportunity costs
• E)Overutilization of resources

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair market value of its net identifiable assets.

Accelerated Depreciation

A method of depreciation that allocates larger depreciation charges to the earlier years of an asset’s life and smaller charges to later years.

Depletion

An accounting method used to allocate the cost of extracting natural resources over their productive life.

Total Asset Turnover

A financial metric indicating how effectively a company uses its assets to generate sales.