Which of the core principles (1) Scarcity, Choice and Opportunity Cost, 2) Cost-benefit, 3) Incentive principle, 4) Diminishing returns) is represented by the statements below? Provide a justification for your choice. (a)  "There is no such thing as a free lunch"  (b) Suppose the state of Illinois passes a law that bans smoking in restaurants.  As a result, residents of Wisconsin who do not like breathing second-hand smoke begin driving across the border to Illinois to eat at restaurants there.   (c) A cafe may wish to serve more customers during the busy summer months. However, employing extra workers may be difficult because of a lack of space in the cafe.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Which of the core principles (1) Scarcity, Choice and Opportunity Cost, 2) Cost-benefit, 3) Incentive principle, 4) Diminishing returns) is represented by the statements below? Provide a justification for your choice.

(a)  "There is no such thing as a free lunch" 

(b) Suppose the state of Illinois passes a law that bans smoking in restaurants.  As a result, residents of Wisconsin who do not like breathing second-hand smoke begin driving across the border to Illinois to eat at restaurants there.  

(c) A cafe may wish to serve more customers during the busy summer months. However, employing extra workers may be difficult because of a lack of space in the cafe.

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