Multiple Choice
The diamond-water paradox was solved by knowing that
A) the total utility of water is greater than the total utility of diamonds.
B) the marginal utility of water is greater than the marginal utility of diamonds.
C) the price of water and diamonds is determined by total utility received, not marginal utility.
D) the price of water and diamonds is determined by marginal utility, not total utility.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The real-income effect refers to<br>A) the law
Q2: A good synonym for "utility" is<br>A) marginal.<br>B)
Q3: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Use the above
Q5: In economics, people make decisions regarding consumption
Q6: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the
Q7: Behavioral economics suggests that people face human
Q8: When marginal utility is zero, total utility
Q9: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -In the above
Q10: Initially, a consumer is at an optimum.
Q11: Refer to the above table. Suppose the