For Your Typical Consumption Levels of Water and Diamonds, the Good

question 107

Multiple Choice

For your typical consumption levels of water and diamonds, the good with the higher marginal utility is ; the good with the higher total utility is ; and the good with the greatest consumer surplus is .

• A) water; water; water
• B) diamonds; water; water
• C) water; water; diamonds
• D) water; diamonds; water
• E) diamonds; water; diamonds

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Definitions:

Timing Differences

Discrepancies between the timing of cash flows and the recognition of revenues and expenses in accounting records.

Recording Error

Mistakes made during the accounting process of recording financial transactions.

Journal

The initial record in which the effects of a transaction are recorded.

Company's Records

Official documents and files that include a business's operational, financial, and transactional data.