One Reason Why the Price of Diamonds Is So High

question 43

Multiple Choice

One reason why the price of diamonds is so high is because the

• A) marginal utility of diamonds is zero.
• B) marginal utility of diamonds is high.
• C) marginal utility of diamonds is low.
• D) total utility of diamonds is low.
• E) total utility of diamonds is high.

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Definitions:

Small Stocks

Shares of relatively small companies, which may offer higher growth potential but also come with higher risk.

Long-Term Bonds

Debt securities with a maturity period typically longer than 10 years, offering the holder a fixed or variable interest rate.

Historical Return

Refers to the past performance of an investment or an index, usually expressed as a percentage change from the initial investment.

Small Stocks

These are shares of companies with a relatively small market capitalization, often considered to be more volatile but potentially offering higher returns compared to larger companies.