Economists use the phrase "There is no such thing as a free lunch," to illustrate the principle that
A)inflation almost always results in higher prices over time.
B)nothing is free in a market economy.
C)making decisions requires trading off one goal against another.
D)if something looks too good to be true, it probably is not worth pursuing.

Question

Quizplus · Accepted Answer

The phrase "There is no such thing as a free lunch" means that everything has a cost, even if it is not immediately apparent. Making a decision to get something for free, such as a free lunch, still requires trading off one's time or effort to obtain it, which has a cost. This principle applies in a market economy where goods and services are exchanged for money, and there is always a cost associated with obtaining them.

Economists Use the Phrase "There Is No Such Thing as a Free