Describe the Differences Between Tradeoffs and Free Lunches in Terms

Question

Examlex · Accepted Answer

The Answer is A tradeoff is a constraint or limit that forces giving up one thing in exchange for something else.When resources are fully employed,a country operates on its PPF.Any movement from one point to another point along the PPF requires the country to make a tradeoff between the two goods because one good is given up to get some other good.A free lunch occurs when some resources are not being used or not being used in their most productive way.When a country operates inside its PPF and moves toward its PPF choosing a different combination of goods,the country enjoys a free lunch.It does not face a tradeoff.

Describe the Differences Between Tradeoffs and Free Lunches in Terms

Essay

Correct Answer:
Verified

Describe the Differences Between Tradeoffs and Free Lunches in Terms

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified