Refer to the Following Graph to Answer the Following Questions

question 42

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 diamonds is greater than the marginal utility of water.
• D) The diamond-water paradox does not exist.
• E) The marginal utility of water is greater than the marginal utility of diamonds.

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Definitions:

Interest

The cost of borrowing money, paid by the borrower to the lender, typically expressed as an annual percentage of the loan amount.

Capital Account

An account on the balance sheet representing the owners' or shareholders' equity, including funds contributed by investors and retained earnings.

Capital Account Balance

The net result of public and private international investments flowing in and out of a country, representing changes in national ownership of assets.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from the total revenue.