The Adage,"There Is No Such Thing as a Free Lunch

question 12

Multiple Choice

The adage,"There is no such thing as a free lunch," is used to illustrate the principle that

• A)goods are scarce.
• B)people face tradeoffs.
• C)income must be earned.
• D)households face many decisions.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating operational liquidity.

Straight-Line Depreciation

A procedure for apportioning the expenditure of a tangible good across its viable life in consistent annual amounts.

Income Taxes

Taxes imposed by the government on income generated by businesses and individuals within their jurisdiction.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.