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:

Descriptive Statistics

Mathematical procedures that allow a researcher to characterize a data pattern; these procedures include measures of central tendency and of variability.

Demand Characteristics

Cues in an experimental environment that suggest to participants what behavior is expected or desired by the researcher.

Obviously Correct

A term indicating that something is clearly right or true, leaving no room for doubt or debate.

Frequency Distributions

A statistical representation, often visual, that displays the number of occurrences of each distinct value of a variable.