Why Are Diamonds More Expensive Than Water

question 411

Multiple Choice

Why are diamonds more expensive than water?

• A) because the last glass of water has higher marginal utility than the last diamond
• B) because the last diamond has higher marginal utility than the last glass of water
• C) because you get more total utility from diamonds
• D) because water is a necessity

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Definitions:

Proficiency Test

An examination designed to measure an individual's skill or knowledge level in a particular area or discipline.

Residual Standard Deviation

A measure of the standard deviation of residuals in regression analysis, indicating the typical distance between observed and predicted values.

Proficiency Test

An evaluation designed to assess an individual's competence or skill level in a particular area.

Regression Analysis

A statistical method for examining the relationship between a dependent variable and one or more independent variables by fitting a linear equation to observed data.