One Reason Why Water Is Cheap Compared to Diamonds Is

question 50

Multiple Choice

One reason why water is cheap compared to diamonds is because the

• A) marginal utility of water is enormous.
• B) marginal utility of water is small.
• C) total utility of water is enormous.
• D) total utility of water is small.
• E) total utility of water and diamonds must be equal, but the marginal utility of water is much lower than the marginal utility of diamonds.

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Definitions:

Unearned Revenues

Money received for services or products that have yet to be delivered or performed; recognized as a liability until the revenue is earned.

Liability Account

An account on a company's balance sheet that represents debts or obligations that the business needs to pay off in the future.

Related Revenue

The income generated from activities that are directly related to the main business operations.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded, to be recognized in the accounting period they are incurred.