Suppose your parents are thinking of buying you a brand new car as a graduation

Question

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. You sell the car to someone else right away in exchange for the cash

B. They gave you a cash gift equal to the value of the car regardless of how much you need a car right now

C. They ask you for what kind of car you want first and then buy it for you

D. 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

Explanation / Answer

Economics is based on the concept of scarcity and its solution.

Therefore, economists would have taken up the situation in terms of first assessing the existence and potency of the scarcity (lack of car). So, they would argue that it would be better if your parents ask you about your choice regarding the scarce commodity (Car) before purchasing it.

Correct option (C)

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.