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.
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Using the information in the table above, what does GDP equal?
A) $365 billion B) $350 billion C) $650 billion D) $380 billion E) GDP cannot be calculated without information on the amount of investment.
Policy actions designed to allow relatively open competition in national stock and bond markets are called
A) capital market liberalization. B) financial sector deregulation. C) cross-border mergers and acquisitions. D) regulatory arbitrage.
If a regulatory board wanted to make sure that a natural monopoly earned a normal rate of return, it should set price which is equal to: a. marginal cost
b. average fixed cost. c. average variable cost. d. average total cost.
Professional baseball teams in the United States use only wooden bats. If aluminum bats were permitted, the likely result would be a
a. shift in the supply curve for aluminum bats. b. shift in the supply curve for wooden bats. c. change in the quantity supplied of aluminum bats. d. persistent shortage of aluminum bats.