In His Book, the Wealth of Nations, Adam Smith Discussed

question 132

Essay

In his book, The Wealth of Nations, Adam Smith discussed the "paradox" of value.He pointed out that nothing is more useful than water, but it is sold for a low price.Diamonds, on the other hand, have very little useful value but command a high price.Use the concepts of total and marginal utility to explain this paradox of value.

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Definitions:

Paul Revere

An American silversmith and patriot in the American Revolution, best known for his midnight ride to alert colonial militia of British forces' approach.

Enlightenment Thought

A philosophical movement in the 17th and 18th centuries emphasizing reason, individualism, and skepticism toward traditional doctrines.

Newton

Sir Isaac Newton, an English mathematician, physicist, and astronomer who formulated the laws of motion and universal gravitation.

Locke

John Locke was a 17th-century English philosopher who laid much of the groundwork for the Enlightenment and contributed fundamentally to theories of governance, knowledge, and the self.