Giving presents on Christmas does NOT generate a deadweight loss if
A)all gift are money.
B)everybody gets exactly want she wants.
C)nobody can be made better off by returning the gift and purchasing a different one.
D)All of the above.

Question

Quizplus · Accepted Answer

Deadweight loss is avoided if the gift perfectly matches the recipient's preferences, which is achieved in all the given scenarios: giving money allows the recipient to buy exactly what they want, receiving exactly what one wants eliminates inefficiency, and if no one can be better off by exchanging the gift, it implies that the gift is as valued as its purchase price.

Giving Presents on Christmas Does NOT Generate a Deadweight Loss