Question

The value paradox (diamond and water paradox) arises because ______.

• A. water has too priced
• B. value in use differs from utility
• C. diamonds are too high priced
• D. value - in - use differs from value - in exchange

Answer 1

The correct option is D value - in - use differs from value - in exchange

• The paradox of value, also known as the diamond-water paradox, is a contradiction which is present around us. Though water is available in abundance and it so useful and essential for survival yet it costs much lower than diamond which is just a luxury item costs much higher price in the market.
• This paradox discusses the concepts of value in use and value in exchange. The things which have the greatest value in use have little or no value in exchange; whereas those which have the greatest value in exchange have frequently little or no value in use.