-Refer to the Above Figure

question 447

Multiple Choice

-Refer to the above figure. All of the following are true concerning the diamond-water paradox EXCEPT

• A) the demand for water exceeds the demand for diamonds.
• B) the price of diamonds exceeds the price of water.
• C) since the price of diamonds is high, demand is great.
• D) marginal utility of diamond consumption is relatively high.

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Definitions:

Liquidation

The process of bringing a business to an end and distributing its assets to claimants, often in the context of bankruptcy.

Corporate Assets

Items of value owned by a corporation, including physical items as well as intangible rights and resources.

Distributed

The process or state of spreading or dispersing something more widely.

Principal

In legal terms, the main party involved, such as the primary person in a contract or the person who grants authority in a power of attorney.