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Suppose Your Parents Are Thinking of Buying You a Brand

Question 42

Multiple Choice

Suppose your parents are thinking of buying you a brand new car as a graduation present. Economists would argue that it would be better if:


A) They gave you a cash gift equal to the value of the car regardless of how much you need a car right now
B) They gave you a cash gift equal to the value of the car long as you really don't have much use for a car right now
C) You sell the car to someone else right away in exchange for the cash
D) They ask you for what kind of car you want first and then buy it for you

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