The paradox of value refers to the fact that
A) different consumers value the same items differently.
B) the value of a good depends on its total utility.
C) water costs little, while diamonds cost a lot.
D) water brings little consumer surplus.
C
You might also like to view...
Microprudential supervision does all of the following EXCEPT
A) checking capital ratios of a bank. B) checking a bank's compliance with disclosure requirements. C) assessing the riskiness of an individual bank's activities. D) focusing on financial system liquidity.
According to classical theory, if the aggregate demand curve decreased and the economy experienced unemployment, then:
a. the economy would remain in this condition indefinitely. b. the government must increase spending to restore full employment. c. prices and wages would fall quickly to restore full employment. d. the supply of money would increase until the economy returned to full employment.