Consumers do not prefer gifts-in-kind to cash gifts
What will be an ideal response?
True. It is possible the consumer would buy the same gift with cash and therefore be just as well off. If the consumer bought something other than the gift, that means that this something else is preferred to the gift. At best, the gift yields the same utility as would have been achieved with the cash, but never more.
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The prisoners' dilemma has an equilibrium in which
A) both players deny. B) both players confess. C) the player who confesses wins. D) the player who denies wins.
Nominal GDP will increase
A) only if the quantity of final goods and services produced rises. B) if either the price level or the quantity of goods and services produced rises. C) only if the price level rises. D) only if the price level falls.