Explain the paradox of value. What will be an ideal ...

[geoffrey]

Explain the paradox of value.
 
  What will be an ideal response?

Question 2

Economists who have compared the incomes of never-married men and women have found that with equal amounts of human capital, ________.
 
  A) the wages of these two groups are the same
  B) men earn significantly more than women
  C) women earn significantly more than men
  D) men specialize more in home production

[lorealeza77]

Answer to Question 1

The paradox of value questions why water, which is essential for life, costs less than diamonds, which are not. This puzzle can be resolved by realizing the difference between marginal utility and total utility. Water has high total utility, but because we consume so much water, the last unit has little value, that is, the water has low marginal utility. Diamonds have little total utility, but because we consume few diamonds, the last unit of diamonds has high marginal utility.

Answer to Question 2

A

[geoffrey]

Thanks for the timely response, appreciate it

[kjohnson]

Gracias!