Asked by Mahammed Bindawood on Jun 27, 2024
Verified
The diamond/water paradox states that things with the ________ value in use frequently have ________ value in exchange.
A) least; the least
B) least; little or no
C) greatest; little or no
D) greatest; the greatest
Diamond/Water Paradox
A paradox stating that (1) the things with the greatest value in use frequently have little or no value in exchange and (2) the things with the greatest value in exchange frequently have little or no value in use.
Value in Use
The utility of a product based on its ability to fulfill the needs of the user.
Value in Exchange
The worth of a good or service in comparison to other goods or services in the context of trade or commerce.
- Explain the paradox of value associated with utility and market prices.
Verified Answer
MA
Myranda ArandaRubioJul 01, 2024
Final Answer :
C
Explanation :
The diamond/water paradox highlights that items with the greatest value in use (like water, which is essential for life) often have little or no value in exchange, while items with less practical use (like diamonds, which are not essential) can have a high value in exchange.
Learning Objectives
- Explain the paradox of value associated with utility and market prices.