Most economists contend that
A) noncash gifts are more efficient than cash gifts.
B) noncash gifts are less efficient than cash gifts.
C) noncash and cash gifts are equally efficient.
D) government can assess consumer preferences better than can consumers themselves.

Question

Quizplus · Accepted Answer

Most economists argue that cash gifts are more efficient than noncash gifts because cash provides maximum flexibility in terms of satisfying a recipient's preferences. Noncash gifts, on the other hand, may not completely align with the recipient's preferences and could result in inefficiencies such as wasted resources or the need to exchange or sell the gift.

Most Economists Contend That