Understanding the Water and Diamond Paradox Is Valuable Because It

question 211

Multiple Choice

Understanding the water and diamond paradox is valuable because it explains why

• A)diamonds have many substitutes.
• B)water is more important than diamonds.
• C)the prices of products are not necessarily measures of the products' usefulness.
• D)consumer spending on diamonds has increased, while spending on water has decreased.

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Definitions:

Congestion Areas

Regions on a chart where a financial security's price has traded within a narrow range for a period, indicating balance between supply and demand.

Sell Signal

An indication, based on technical analysis or other factors, suggesting that it might be an advantageous time to sell a particular investment.

Trin Ratio

The Trin Ratio, also known as the Arms index, measures market sentiment by dividing the ratio of advancing and declining issues by the ratio of advancing and declining volume, often used to detect overbought or oversold conditions.

Technical Analysts

Specialists who evaluate stocks and securities by analyzing statistical trends, such as price movements and trading volume, to forecast future price behavior.