Why Does the Paradox of Value Between Diamonds and Water

question 241

Multiple Choice

Why does the paradox of value between diamonds and water arise?

• A) because water has a low price and a low total utility, while diamonds have a high price and a high total utility
• B) because water has a low price and a low marginal utility, while diamonds have a high price and a high marginal utility
• C) because necessities like water are higher priced than luxuries like diamonds
• D) because diamonds have a higher value to people even though water is essential to life
• E) because water has a low price and a low total utility, while diamonds have a high price but also a low total utility

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Definitions:

Computerized Accounting System

Software used to manage and record accounting transactions, improving efficiency and accuracy.

ATM Withdrawals

Transactions where cash is taken out of a bank account using an Automated Teller Machine.

Depositor's Account

An account maintained by a depositor at a financial institution, reflecting the amount of funds deposited.

Uncollectible Check

A check that cannot be processed because the maker’s bank account has insufficient funds or the account is closed.