The saying "There's no such thing as a free lunch," applies
A) when there is some unemployment.
B) on the production possibilities frontier.
C) to unattainable combinations of goods and services.
D) when more of one good can be produced without decreasing production of another.
E) at all points inside the PPF.

Question

Quizplus · Accepted Answer

This saying means that producing more of one good requires sacrificing the production of another, which is a concept illustrated by the production possibilities frontier (PPF). The PPF shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized, implying opportunity costs and trade-offs.

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