ECONOMICS
OPPORTUNITY COST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
You must always pay for lunch.
|
|
|
Never accept a free lunch.
|
|
|
None of these.
|
|
|
Everything has a cost.
|
Detailed explanation-1: -Key Takeaways. “There ain’t no such thing as a free lunch” (TANSTAAFL) is a phrase that describes the cost of decision-making and consumption. TANSTAAFL suggests that things that appear to be free will always have some hidden or implicit cost to someone, even if it is not the individual receiving the benefit.
Detailed explanation-2: -Economists use the phrase “There is no such thing as a free lunch, ” to illustrate the principle that making decisions requires trading off one goal against another. There is an opportunity cost of every decision that is taken. Since resources are limited in comparison to the wants, all wants cannot be fulfilled.
Detailed explanation-3: -"There is no such thing as free lunch” means that one has to give something to receive something else in return. It is a mutual benefit between involved parties.
Detailed explanation-4: -What do economists mean when they say that “there is no free lunch?” Give another example to which this statement applies. They mean that nothing is free, and someone always has to pay a price. Is rational self-interest the same thing as selfishness?