Suppose That in the Year 2050, One Gallon of Water

question 141

Multiple Choice

Suppose that in the year 2050, one gallon of water is more expensive than a one-carat diamond. What could explain this?

• A)Water must be much less scarce in the world of 2050 than today.
• B)Diamonds must be much less scarce in the world of 2050 than today.
• C)The diamond-water paradox does not hold for any pair of goods in the future.
• D)The law of diminishing marginal utility no longer holds.

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Definitions:

Practical

Denotes something that is oriented towards action or utility, often emphasizing effectiveness and convenience in real-life situations.

Good Theory

A well-substantiated explanation of some aspect of the natural world that is acquired through the scientific method and repeatedly tested and confirmed through observation and experimentation.

Operational Definition

A clear, precise way of defining a concept by specifying the operations or procedures used to measure or identify it.

Variable

An element, feature, or factor that is likely to vary or change in value between different individuals or under different conditions.