The High Price of Diamonds Relative to the Price of Water

question 40

Multiple Choice

The high price of diamonds relative to the price of water is due to the fact that

• A) total benefits from water are relatively low.
• B) total benefits from diamonds are relatively high.
• C) marginal benefits from water are relatively high.
• D) marginal benefits from diamonds are relatively low.
• E) none of the above is true.

---

Definitions:

Just-World Phenomenon

The cognitive bias to believe that the world is inherently fair, leading individuals to rationalize an otherwise unjust situation by attributing deservingness to the outcomes.

Believe

To accept something as true, factual, or real, often without absolute proof and based on trust, faith, or confidence in it or its source.

Underpaid

The state of receiving less financial compensation for one's work than is considered reasonable or fair.

Women

Adult female humans, characterized by the possession of two X chromosomes in most cases and typically capable of pregnancy and childbirth.