Why is water much cheaper than diamonds even though water is essential to human lives while diamonds are NOT?

What will be an ideal response?

This is called the diamond-water paradox. The total utility of water greatly exceeds the total utility of diamonds, but the marginal utility of diamonds far exceeds the marginal utility of water because of the much more limited supply of diamonds than water. The relative prices are determined by marginal utilities, not total utilities.

Economics

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Suppose the country of Tiny Town decided to open its borders to free trade. As a result, a number of its workers lost their jobs to international competition and can't find new jobs because their skills don't match what is required for job openings

The workers who lost their jobs and searched for new ones are best be considered part of A) frictional unemployment. B) structural unemployment C) cyclical unemployment. D) discouraged workers.

Economics

If the Fed wishes to decrease the supply of money and credit, it may sell government securities, raise the discount rate, or lower required reserve ratios

Indicate whether the statement is true or false

Economics