Water Is Essential to Life While Diamonds, While Beautiful, Are

question 66

Multiple Choice

Water is essential to life while diamonds, while beautiful, are not esentialto life.In the marketplace, diamonds are very expensive while water isrelatively cheap.We can resolve this paradox by focussing on

• A)total utility rather than average utility
• B)average utility rather than marginal utility
• C)marginal utility rather than total utility
• D)total utility rather than marginal utility
• E)average utility rather than total utility

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Definitions:

Intangible Assets

Non-physical assets having a value with an indefinite life span, such as patents, trademarks, and goodwill.

Amortized

Amortized refers to the gradual reduction of a debt over a period of time through regular payments that cover both the loan interest and the principal amount.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, and water.

Metal Ores

Naturally occurring solid materials from which metals can be extracted profitably.