"THERE IS NO SUCH THING AS A FREE LUNCH", why is this phrase enough to describe...

**JUSTME** · 06-13-2009, 04:14 AM

...the concept of economics? my answer:

"because economics is all about trading, and trade is exchanging goods or services, which means, both sides have to give something up, it is not possible that only 1 side has to give up something"

basically, that's my answer, but Im not contented with it, it lacks something, and it doesn't sound smart, haha, please help me.... the answer is on the tip of my tounge, its hard to explain. lol, help me please... or if you have other suggestions, that would also help. Thanks.

God Bless

thanks everyone, I got ideas from all 3 of you, thanks! I hope my teacher likes my answer, haha

06-13-2009, 04:15 AM

I've come across that phrase in my studies, but I always associated that with trading financial instruments (e.g. stocks and bonds). I'll try not to get into anything too technical (especially since I'm in summer mode), but the phrase can be associated with an assumption of perfect markets...e.g. a lack of arbitrage opportunities, an inability to consistently predict the market, risk-adjusted returns on financial instruments. If you do not understand a single thing I just said, Google perfect markets. Then again, this is only one interpretation of the phrase.