The Diamond-Water Paradox Is an Example That Shows That

question 169

Multiple Choice

The diamond-water paradox is an example that shows that

• A) necessities like water should have a higher price.
• B) marginal utility rather than total utility determines what people are willing to pay for a good.
• C) there are exceptions to the law of diminishing marginal utility.
• D) marginal utility can initially increase and then decrease.

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Definitions:

Intelligence Quotient

A measure of a person's cognitive abilities and potential, compared against a standardized score typically drawn from a variety of tests.

Gifted

The 2 percent of the population falling on the upper end of the normal curve and typically possessing an IQ of 130 or above.

The Bell Curve

A book that argues intelligence is a significant predictor of personal outcomes and that there are racial differences in intelligence that shape social status.

Socioeconomic Classes

Categories of individuals based on their economic status, often determined by factors such as income, wealth, education, and occupation.