/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Problem 11 A friend pays for your lunch. Is... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 1: Problem 11

A friend pays for your lunch. Is this an example of a free lunch? Why or why not?

Short Answer

Expert verified
No, this is not an example of a free lunch. Even though the person consuming the meal may not have paid any money, the meal itself was not free because the friend paid for it.

Step by step solution

01

Understand the Situation

Here, it is important to focus on the details of the situation. A friend is paying for the lunch, which means money is still being used to cover the cost of the meal. It may not be coming out of the person's pocket, but it is still being paid for by someone.
02

Apply Economic Concept

Economic concept states 'there's no such thing as a free lunch'. It implies that even if something seems to be free, there is always a cost, even if that cost does not have to be paid by the person receiving the benefit. Here, the cost of the lunch is being covered by the friend. So, according to this economic principal, it's not a free lunch.
03

Conclusion

Based on the above analysis, it can be concluded that even if a friend pays for lunch and it did not cost anything to the person who ate the lunch, it is not an example of a free lunch because the friend bears the cost of the lunch. The cost, even though it's not paid by the person consuming the lunch, is still present and hence, it's not a 'free lunch' in economic terms.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Give an example of something that is a good for one person and a bad for someone else.

Is it possible for a person to incur an opportunity cost without spending any money? Explain.

If you found \(\$ 10\) bills on the sidewalk regularly, we might conclude that individuals don't try to maximize net benefits. Do you agree or disagree with this statement. Explain your answer.

The United States is considered a rich country because Americans can choose from an abundance of goods and services. How can there be scarcity in a land of abundance?

The person who smokes cigarettes cannot possibly be thinking in terms of costs and benefits because it has been proven that cigarette smoking increases one's chances of getting lung cancer. Do you agree or disagree with the part of the statement that reads "the person who smokes cigarettes cannot possibly be thinking in terms of costs and benefits"? Explain your answer.
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.