The Fact That the Price of Diamonds Is Higher Than

question 375

Multiple Choice

The fact that the price of diamonds is higher than the price of water

• A) cannot be explained by behavioral economics or consumer choice theory.
• B) is an outcome of irrational behavior in consumer choice theory.
• C) can be explained only by behavioral economics but not by consumer choice theory.
• D) can be explained as the outcome of a consumer optimum in consumer choice theory.

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Definitions:

Close of Escrow

The finalization of a real estate transaction, where all conditions have been met and the property's title is transferred from the seller to the buyer.

Condition Subsequent

A condition in a contract that, when it occurs, terminates an existing obligation, making the contract's terms no longer binding.

Al Gore

A former Vice President of the United States who has been notably active in raising awareness about global warming and environmental issues.

Substantial Performance Standard

A legal principle that if a party has largely fulfilled its obligations under a contract, with only minor breaches, it is entitled to payment, minus damages for the breaches.