Noncash gifts:
A. increase the utility of recipients by introducing them to products they have not consumed
before.
B. reduce recipient utility relative to a cash gift because noncash gifts often fail to match
recipient preferences.
C. entail as much utility as do cash gifts.
D. increase the utility of recipients because many people are uncertain of their own
preferences.
Answer: B
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In the resource market
A. businesses sell services to households. B. businesses borrow financial capital from households. C. households buy resources from businesses. D. households sell resources to businesses.
Which of the following transactions would not be included in the current account of the home country?
A) A consumer good is imported into the home country. B) A home country resident makes a deposit in a foreign bank. C) A foreign student pays tuition to a university in the home country. D) A home country resident receives income on his or her foreign assets.
Currently, the dominant reserve currency is the
A) U.S. dollar. B) Japanese yen. C) euro. D) British pound.
Which of the following is an example of a natural monopoly?
a. A local electricity supplier. b. A dry cleaner in New York City. c. An aircraft manufacturer. d. A pharmaceutical company that holds a patent on a new drug.