If water is essential for life, while diamonds are not, then why is water cheaper than diamonds?
A. Because the marginal utility of water is high but the total utility is low.
B. Because the total utility generated by diamonds is larger than the total utility generated by water.
C. Because most people do not understand their total need for water.
D. Because water is abundant, the marginal utility of water is low, and price reflects marginal utility, not total utility.
Answer: D
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African countries contain a third of the world's population and over half of the world's extreme poverty
Indicate whether the statement is true or false
Longitudinal data on income inequality in the United States indicates that: a. children of poor families stay poor, but children of rich families do not always stay rich
b. children of poor families often escape poverty, but rich families invariably retain their wealth over time. c. there is substantial movement among income groupings in the United States. d. the rich are getting richer and the poor are getting poorer.
A . What is a free rider and when do we see free riding? b. Why doesn't the market calculate the costs and benefits that accrue to free riders?
In Figure 30.2, the equilibrium wage rate is
A. $20 per hour. B. $12 per hour. C. $24 per hour. D. $16 per hour.