ECONOMICS (CBSE/UGC NET)

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: -"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-3: -A free lunch describes a situation where an individual receives goods or services at no cost. A free lunch’s cost is opportunity cost. In investing terms, a free lunch is usually a profit without risks.

Detailed explanation-4: -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-5: -Definition. 1 / 144. There is no free lunch in economics means that everything comes with a price. The price may not always be money. If you get something for free, there is a cost that has be paid somewhere in the wider economic system.