What is one reason a gift card might be less desirable than cash?
A) A gift card requires an individual to purchase from a particular store, which restricts the choice set.
B) Cash requires an individual to purchase from a particular country, which restricts the choice set.
C) Cash and the gift card are equally desirable, there is no problem here.
D) Gift cards are easier to steal or lose relative to cash.

Question

Quizplus · Accepted Answer

A gift card limits the recipient's options and forces them to shop at a specific store, whereas cash can be used anywhere. This lack of flexibility can make gift cards less desirable than cash. Additionally, if the gift card is not used before it expires, the recipient may lose the value of the gift card altogether.

What Is One Reason a Gift Card Might Be Less