Review the following statement. "He who has choice has pain." What is meant by this?
What will be an ideal response?
"He who has choice has pain" refers to the sad but unavoidable fact that whatever we decide to do is going to have a cost. If we decide to buy a hamburger it means we can't buy a chicken sandwich. The sentence is primarily focused on the idea that all choices involve opportunity costs.
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Which of the following has been a problem faced by the FDIC in its provision of federal deposit insurance?
A) a relatively low number of bank failures each year, which has reduced the need for deposit insurance B) moral hazard arising from the tendency for the highest-risk banks to be those most interested in obtaining deposit insurance in the first place C) adverse selection arising from the tendency for banks to take on more risk after they receive deposit insurance D) moral hazard arising from the tendency for banks to take on more risk after they receive deposit insurance
In the simple Keynesian aggregate expenditure model, the equilibrium level of disposable income is achieved when:
a. the employment rate is equal to the labor force participation rate. b. saving equals investment c. aggregate expenditures exceed output. d. aggregate expenditures are equal to real disposable income.