(TCO 1) What is the economic meaning of the expression that "There is no such thing as a free lunch?"

ECON 312 Principles of Economics Midterm with Answers
  1. (TCO 1) Henry wants to buy a book.  The economic perspective suggests that Henry will buy the book if
  2. (TCO 1) The law of increasing opportunity costs indicates that
  3. (TCO 1) Which expression is another way of saying "marginal cost"?
  4. (TCO 1) The individual who brings together economic resources and assumes the risk of business ventures in a capitalist economy is called the
  5. (TCO 1) Another term for capitalism is
  6. (TCO 1) Markets in which firms sell their output of goods and services are called
  7. (TCO 1) Consumers express self-interest when they
  8. (TCO 1) Consumer sovereignty and "dollar votes" guide the market system in dealing with which fundamental question?
  9. (TCO 1) The major "success indicator" for business managers in command economies like the Soviet Union and China in the past was
  10. (TCO 2) The quantity demanded of a product increases as its price declines because the
  11. (TCO 2) A surplus of a product will arise when price is
  12. (TCO 2) Black markets are associated with
  13. (TCO 2) An increase in demand for oil along with a simultaneous increase in supply of oil will
  14. (TCO 2) If Product Y is an inferior good, a decrease in consumer incomes will
  15. (TCO 2) If the price elasticity of demand for a product is equal to 0.5, then a 10 percent decrease in price will increase quantity demanded by
  16. (TCO 2) Demand is said to be inelastic when
  17. (TCO 2) You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1.  To increase total revenues, you should:
  18. (TCO 2) If the demand for a product is elastic, then
  19. (TCO 2) Airlines charge business travelers more than leisure travelers because there is a more
  20. (TCO 3) Suppose that you could prepare your own tax return in 15 hours, or you could hire a tax specialist to prepare it for you in two hours.  You value your time at $11 an hour.  The tax specialist will charge you $55 an hour.  The opportunity cost of preparing your own tax return is
  21. (TCO 3) If a firm's revenues just cover all its opportunity costs, then
  22. (TCO 3) In the short run
  23. (TCO 3) Fixed costs are those costs which are
  24. (TCO 3) Marginal cost can be defined as the
  25. (TCO 3) If you know that total fixed cost is $200, total variable cost is $600, and total product is four units, then average total cost must be: