The Paradox of Value as It Applies to Diamonds and Water

question 44

Multiple Choice

The paradox of value as it applies to diamonds and water can be explained by

• A)distinguishing between utility and price.
• B)water having a high level of marginal utility relative to diamonds.
• C)water having a low price relative to diamonds.
• D)the fact that utility can't be measured.
• E)distinguishing between total utility and marginal utility.

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Definitions:

Purchase Order

A document issued by a buyer to a seller, detailing types, quantities, and agreed prices for products or services.

Bill

A statement of money owed for goods sold or services provided, typically specifying the total amount due and payment terms.

Inventory Transactions

Operations or activities involving the purchase, sale, or management of stock and merchandise in a business.

QBO

Stands for QuickBooks Online, an accounting software that helps in managing business finances in the cloud.