Free lunch: Difference between revisions
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== Free Lunch == | |||
[[File:Free_lunch,_by_Charles_Dana_Gibson_(cropped).jpg|thumb|right|Illustration of a free lunch by Charles Dana Gibson]] | |||
The | The concept of a '''free lunch''' refers to a situation where a person receives a benefit or service without having to pay for it. The term is often used metaphorically to suggest that it is impossible to get something for nothing, as there are always hidden costs or trade-offs involved. | ||
== | == Historical Background == | ||
The phrase "free lunch" originated in the United States in the 19th century. During this time, many saloons offered a "free lunch" to patrons who purchased a drink. These lunches typically consisted of salty foods like ham, cheese, and crackers, which encouraged customers to buy more drinks. While the lunch was advertised as "free," the cost was indirectly covered by the price of the drinks. | |||
== | == Economic Implications == | ||
In economics, the concept of a free lunch is often used to illustrate the idea that resources are limited and that every choice has an opportunity cost. The phrase "There ain't no such thing as a free lunch" (TANSTAAFL) is commonly used to express this principle. It suggests that even if something appears to be free, there is always a cost involved, whether it is borne by someone else or hidden in some way. | |||
== | == Modern Usage == | ||
In modern times, the term "free lunch" is used in various contexts to describe situations where benefits are received without direct payment. For example, in the context of [[public policy]], a government program might be described as a "free lunch" if it provides benefits to citizens without requiring them to pay directly for those benefits. However, the costs of such programs are typically covered by [[taxation]] or [[public debt]]. | |||
== Related Concepts == | |||
The idea of a free lunch is related to several other economic concepts, including: | |||
* [[Opportunity cost]]: The cost of forgoing the next best alternative when making a decision. | |||
* [[Externality]]: A cost or benefit that affects a party who did not choose to incur that cost or benefit. | |||
* [[Subsidy]]: A financial aid or support extended to an economic sector, generally with the aim of promoting economic and social policy. | |||
== Related Pages == | |||
* [[Opportunity cost]] | |||
* [[Externality]] | |||
* [[Subsidy]] | |||
* [[Public goods]] | |||
[[Category:Economics]] | [[Category:Economics]] | ||
Latest revision as of 11:07, 23 March 2025
Free Lunch[edit]
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The concept of a free lunch refers to a situation where a person receives a benefit or service without having to pay for it. The term is often used metaphorically to suggest that it is impossible to get something for nothing, as there are always hidden costs or trade-offs involved.
Historical Background[edit]
The phrase "free lunch" originated in the United States in the 19th century. During this time, many saloons offered a "free lunch" to patrons who purchased a drink. These lunches typically consisted of salty foods like ham, cheese, and crackers, which encouraged customers to buy more drinks. While the lunch was advertised as "free," the cost was indirectly covered by the price of the drinks.
Economic Implications[edit]
In economics, the concept of a free lunch is often used to illustrate the idea that resources are limited and that every choice has an opportunity cost. The phrase "There ain't no such thing as a free lunch" (TANSTAAFL) is commonly used to express this principle. It suggests that even if something appears to be free, there is always a cost involved, whether it is borne by someone else or hidden in some way.
Modern Usage[edit]
In modern times, the term "free lunch" is used in various contexts to describe situations where benefits are received without direct payment. For example, in the context of public policy, a government program might be described as a "free lunch" if it provides benefits to citizens without requiring them to pay directly for those benefits. However, the costs of such programs are typically covered by taxation or public debt.
Related Concepts[edit]
The idea of a free lunch is related to several other economic concepts, including:
- Opportunity cost: The cost of forgoing the next best alternative when making a decision.
- Externality: A cost or benefit that affects a party who did not choose to incur that cost or benefit.
- Subsidy: A financial aid or support extended to an economic sector, generally with the aim of promoting economic and social policy.
