The water and diamond paradox is explained by the fact that the total utility of water is higher than the total utility of diamonds, but the marginal utility of water is lower than the marginal utility of diamonds. Which of the following goods, when compared, have total and marginal utilities that best reflect the water and diamond paradox, although certainly not as vividly?
a. cake and ice cream
b. wine and soft drinks
c. jewelry and tattoos
d. bread and caviar
e. horses and automobiles
D
Economics
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Which of the following businesses could easily exit a market?
a. a diamond mine b. a hot dog restaurant c. an oil refinery d. a breakfast cereal company
Economics
A worker who loses his or her job as a consequence of a decline in aggregate demand in the economy is experiencing:
a. disguised unemployment. b. underemployment. c. cyclical unemployment. d. frictional unemployment. e. seasonal unemployment.
Economics