Economics focus: Is Santa a deadweight loss Are all those Christmas gifts just a waste of resources

1
Economics focus Is Santa a deadweight loss?Are
all those Christmas gifts just a waste of
resources?

• UE Section C 2004
• MC Cloze

2
Economics focus Is Santa a deadweight loss?Are
all those Christmas gifts just a waste of
resources?

• People often say that its the thought that
  counts when giving/receiving gifts. Do you
  agree?
• Is it a waste of money when someone receives a
  gift that they dont like?

3
To many, economics has (17) been known as a
gloomy science.

• A. even
• B. now
• C. long
• D. once

• Many people consider economics gloomy. Its only
  surprising that economist would say bad things
  about Christmas.
• has ___ been known as is an expression meaning
  has been considered for a long time.
• C. long correct

4
seems to be a treat for those concerned with
GDP growth. After all, everyone (18).

• A. is spending
• B. spend
• C. is spent
• D. has spent

• Everyone 3rd person singular X B
• People spend money. Need active voice X C
• ??? It still seems (present tense) to be a treat,
  so its still happening now.
• A. is spending Correct.

5
In America, (19) make 25 of their yearly sales
and 60 of their profits between Thanksgiving and
Christmas.

• A. retailers
• B. economists
• C. bargain-hunters
• D. shoppers

• Only one option makes sales and profits.
• A. retailers correct.

6
(20), economists find something to worry about in
the kind of purchases being made.

• A. Increasingly
• B. Anticipating this
• C. Even so
• D. Besides

• Such a big of sales of profits should mean that
  X-mas is good for the economy.
• It is surprising that they can find something to
  worry about.
• C. Even so correct.

7
(21) the holiday spending is on the gifts for
others.

• A. The majority
• B. At most
• C. Much of
• D. Mainly for

• A. could be correct if we added of
• B. maximum
• C. A lot of
• D. cannot be correct because for seems to
  introduce the people were buying for.
• C. Much of correct.

8
At the simplest level, giving gifts involves the
giver (22) that the receiver would like.

• A. Thinking what thing
• B. thinks about the thing
• C. to think something
• D. thinking of something

• Giving gifts involves something. Cannot be B. or
  C..
• D. sounds more natural.
• D. thinking of something correct.

9
He tries to (23) her preferences, as economists
say, and then buys the gift and delivers it.

• A. question
• B. inform
• C. search
• D. guess

• Preferences the things she likes most.
• He doesnt know what she likes, so he tries to
• Only one obvious choice.
• D. guess correct.

10
Even if a gift is enjoyed, it may not be what the
receiver (24) had she spent the money herself.

• A. had bought
• B. would have bought
• C. may buy
• D. will buy

• The gift has already been bought, so it is not
  possible for her to spend the money herself.
• B. would have bought correct.

11
Intrigued (25) this difference between wants and
gifts, in 1993 economist Joel Waldfoel attempted
to estimate the mismatch in dollar (26).

• A. from
• B. by
• C. to
• D. of

• Which preposition follows intrigued?
• B. by correct.

12
Intrigued (25) this difference between wants and
gifts, in 1993 economist Joel Waldfoel attempted
to estimate the mismatch in dollar (26).

• A. bills
• B. charges
• C. terms
• D. notes

• This explains how he tried to estimate the
  mismatch.
• in ____ is an expression used to say that he
  looked at the problem from this particular
  perspective.
• C. terms correct

13
His results were gloomy on average, a gift was
valued by the receiver (27) the price paid by the
giver.

• A. much after
• B. much beneath
• C. well down
• D. well below

• Which sounds better with price?
• D. well below correct
• N.B. Well is used for emphasis here and is more
  similar in meaning to very than good.

14
The most conservative (28) put the average
receivers valuation at 90 of the buying price.

• A. estimate
• B. value
• C. vote
• D. voice

• This research involves people guessing the value
  of gifts.
• A. estimate correct

15
The missing 10 is what economists (29) a
deadweight loss a waste of resources that could
be avoided

• A. mean
• B. state
• C. note
• D. call

• Deadweight loss is a term used by economists.
• It is the name they gave to a waste of resources
  that could be avoided.
• D. call correct

16
Perhaps (30), the most efficient gifts (those
with the smallest deadweight loss) were those
from close friends and relations,

• A. not surprisingly
• B. to contradict this
• C. subconsciously
• D. less economical

• Would you expect your best friend or mother to
  know what you would like for Christmas?
• Of course, so gifts from these people are more
  efficient.
• A. not surprisingly correct.

17
the most efficient gifts were those from
close friends and relations, (31) non-cash gifts
from extended family were the least efficient.

• A. as if
• B. whereas
• C. although
• D. because

• We are comparing the most efficient gifts with
  the least efficient.
• Which conjunction is used to say that even though
  something is true of one thing, it is not true of
  another?
• B. whereas correct.

18
All of this (32) what many grandparents already
know the best present is (33) is totally
flexible (cash) or very flexible (gift vouchers).

• A. criticises
• B. suggests
• C. contradicts
• D. determines

• Extended family members dont know each others
  preferences.
• What does this fact make you think is the best
  gift from extended family? Cash.
• B. suggests correct

19
, the best present is (33) is totally flexible
(cash) or very flexible (gift vouchers).

• A. which
• B. either
• C. one that
• D. for what

• In other words
• The best present is a present that is totally
  flexible
• C. one that correct.