Which of the following is most easily excludable?

Water is cheap and diamonds are expensive because water has a ________, and diamonds have a ________

A) low total utility; high total utility B) low marginal utility; high marginal utility C) high marginal utility; low marginal utility D) low marginal utility and a low total utility; high marginal utility and a high total utility

An individual has preferences consistent with standard expected utility theory. They have utility function U(x) over wealth x. Starting with initial wealth of $10,000, the person is then faced with two choice problems. The first involves a choice between (A) no gamble and (B) a gamble with an equal chance of winning $1,800 and losing $1,000 . The second choice problem, the person first has $1,000

taken away (resulting in the adjustment of the reference point). The choice is then between (C) being given back $1,000 for sure and (D) an equal chance of winning $2,800 or nothing. What can be said about the choices the person would make? a. The person would never choose both A and D. b. The person would never choose both A and C. c. The person would choose A and D. d. The person would choose A and C.