Which of the following summarizes the "incentive problem" with gift-giving that Professor Tabarrok discusses in the video?
A. Gift-giving reduces the incentives for people to rely on market transactions.
B. When people choose gifts, they have little incentive to choose carefully.
C. When people buy gifts, they have an incentive to overspend to send a signal that they are generous.
D. People have little incentive to purchase a gift unless they expect a gift in return.
Ans: B. When people choose gifts, they have little incentive to choose carefully.
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Cross-price elasticity of demand measures how the quantity demanded of one good changes as the price of another good changes
a. True b. False Indicate whether the statement is true or false