Question 8 The phrase that there is no such thing as free lu

Question 8 The phrase that \"there is no such thing as free lunch\" is not the best representation of which of the following concepts in economics? O a. Efficiency O b. Equity c.Opportunity cost O d. Rational behavior e. All except (c) above

Solution

8) The phrase refers to the concept of opportunity cost in economics.It is impossible to get something for nothing.Every choice one makes has a next,best alternative that one could have chosen but didn\'t.That foregone opportunity is known as opportunity cost.

So,the option (e) all except c

9) The supply curve shifts to left because of decrease in supply by the producers due to reasons such as increase in input costs,rise in prices of related products,deterioration in technology

Therefore option (e) both b and c,they would actually shift the supply curve to the right.