Which of the Following Statements Is FALSE, with Respect to What

question 398

Multiple Choice

Which of the following statements is FALSE, with respect to what economist Adam Smith called the diamond-water paradox?

• A) The total utility of water greatly exceeds the total utility derived from diamonds.
• B) Total utility does not determine what people are willing to pay for a unit of a particular commodity; marginal utility does.
• C) The demand for water is much smaller than the demand for diamonds.
• D) There are relatively few diamonds, so the marginal utility of the last diamond consumed is relatively high.

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Definitions:

Alzheimer's Disease

A progressive neurological disorder characterized by memory loss, cognitive decline, and personality changes, leading to the inability to perform daily activities.

Dementia

A broad category of brain diseases that cause a long-term and often gradual decrease in the ability to think and remember, significantly affecting a person's daily functioning.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often involving delusions and hallucinations.

Long-Term Memory

A type of memory capable of storing information for an extended period, sometimes indefinitely, including facts, experiences, and skills.