ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The businesses need to compensate for the lack of resources by supplying enough products.
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Food is free when farms grow it themselves for the needs and wants of the consumers.
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The business still has to pay for the resources that went into the “meal".
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None of the above
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Detailed explanation-1: -"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: -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?
Detailed explanation-4: -said to emphasize that you cannot get something for nothing: “I get to travel with my job but the downside is I have to give talks.” “Well, there’s no such thing as a free lunch."