Refer to the Following Graph to Answer the Following Questions

question 8

Multiple Choice

Refer to the following graph to answer the following questions:

-Which of the following statements is true?

• A) Water costs more than diamonds.
• B) The total utility of diamonds is greater than the total utility of water.
• C) The marginal utility of water is greater than the marginal utility of diamonds.
• D) The diamond-water paradox does not exist.
• E) The total utility of water is greater than the total utility of diamonds.

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Definitions:

Unemployed Workers

Individuals who are without a job but are actively seeking employment.

Sectoral Shifts

Changes in economic activity or labor market demand across different sectors or industries over time.

Temporarily Cause Unemployment

Situations or policies that lead to a short-term increase in unemployment, as workers transition between jobs or industries adjust to new conditions.

Sectoral Shifts

Changes in the economic landscape that cause resources (like labor) to move from one industry or sector to another, often due to technological changes or globalization.