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

question 119

Multiple Choice

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

• A)that even if the lunch is free, we pay for it in extra calories
• B)that resources used up in producing the lunch are not available to satisfy other wants
• C)the same thing as "The best things in life are free"
• D)you can eat only if you work first
• E)neither sea water nor air is free

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Definitions:

Annually Compounded

Interest on an investment that is calculated and added to the principal sum once a year.

Rate of Return

The positive or negative change in the worth of an investment, quantified over a predetermined period and depicted as a percentage of the initial investment cost.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.

Successive Years

Successive years that occur back-to-back without any breaks.