Question

The assertion that "There is no free lunch" means that:

A. there are always tradeoffs between economic goals.
B. all production involves the use of scarce resources and thus the sacrifice of alternative goods.
C. marginal analysis is not used in economic reasoning.
D. choices need not be made if behavior is rational.

Answer 1

Answer:

The correct answer is option B.

Explanation:

The statement "There is no free lunch" means that no product is made for free. Production of any good or service requires resources. These resources are scarce and have alternative uses. So in order to produce any goods or services limited resources are used and its alternative uses are sacrificed.