The water and diamonds paradox can be explained by considering:

(a) Marginal Utility.
(b) The difference between inferior and luxury goods.
(c) Long run costs.
(d) It cannot be explained.

Answer: (a) Marginal Utility.

Economics

You might also like to view...

During an economic expansion, real GDP ________ and unemployment ________

A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases

Economics

Refer to Figure 14.2. Hurricane Katrina was responsible for destroying a large portion of oil and natural gas refining capacity on the Gulf coast in 2005. Other things equal, this would best be represented by a movement from

A) point A to point B. B) point B to point A. C) point B to point C. D) point A to point C.

Economics