Asked by April Lawrenz on May 18, 2024
Verified
Which of the following statements is correct?
A) Both cash and noncash gift-giving cause value losses.
B) Neither cash nor noncash gift-giving causes value losses.
C) Noncash gift-giving creates a value loss, but cash gifts do not.
D) Cash gifts create a value loss, but noncash gifts do not.
Value Loss
The decrease in the worth or price of an asset or a commodity in the market over time.
Cash Gift-giving
The practice of giving money as a present to someone during special occasions or cultural events.
Noncash
Noncash pertains to transactions, rewards, or benefits that do not involve the direct exchange of money, such as stock options, services, or goods.
- Understand the economic rationale behind gift-giving, theft, and market behaviors.
Verified Answer
SS
Samantha SantillanesMay 23, 2024
Final Answer :
C
Explanation :
Noncash gift-giving often results in a value loss because the giver may choose a gift that the recipient does not value as much as its cost, whereas cash gifts allow recipients to purchase something of equivalent value to the cash, thus avoiding value loss.
Learning Objectives
- Understand the economic rationale behind gift-giving, theft, and market behaviors.