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The Water-Diamond Paradox Is Resolved Once We Realize That the Marginal

question 30

Multiple Choice

The water-diamond paradox is resolved once we realize that the marginal utility of the last gallon of water consumed is very ____ and the marginal utility of the last diamond carat purchased is very ___.


Definitions:

Cognitive Dissonance

A psychological phenomenon that occurs when an individual experiences discomfort due to holding conflicting beliefs or values.

Defensive Attributions

Cognitive processes used to deflect blame from oneself and to prevent feelings of guilt or inadequacy, often by assigning responsibility to external factors.

Self-Serving Bias

A common tendency to attribute success to personal characteristics and failures to external factors for self-enhancement.

Actor-Observer Bias

A cognitive bias where individuals attribute their own actions to external situations while attributing others' actions to their personalities or dispositions.

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