The paradox of value refers to the fact that A) different ...

[Bernana]

The paradox of value refers to the fact that
 
  A) different consumers value the same items differently.
  B) the value of a good depends on its total utility.
  C) water costs little, while diamonds cost a lot.
  D) water brings little consumer surplus.

Question 2

Over the past decade, the incomes of the top 1 percent have increased disproportionately higher than that of the middle class. These changes mean that the Lorenz curve moved ________ the 45 degree line and the Gini ratio has ________.
 
  A) closer to; decreased
  B) closer to; increased
  C) further away from; decreased
  D) further away from; increased

[IAPPLET]

Answer to Question 1

C

Answer to Question 2

D