Question

multiple select question
select all that apply
which of these are true about the apparent contradiction known as the paradox of value?

it was due to the fact that some items like diamonds had very high utility and very low practical use.

it was first explained by adam smith in his famous book the wealth of nations.

it was not resolved until it was realized that something had to be scarce and have utility in order to have value.

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Explanation:

1. Analyze the first option: The paradox of value (diamond - water paradox) is about items like diamonds having high market value (price) but low practical use (in terms of basic needs) and water having high practical use but low market value. However, the statement says "very high utility" for diamonds, which is incorrect as diamonds have low utility for basic needs. So this option is false.
2. Analyze the second option: Adam Smith in "The Wealth of Nations" first presented the paradox of value (why diamonds are more valuable than water even though water is more useful). So this option is true.
3. Analyze the third option: The paradox was resolved when the concept of marginal utility was introduced, realizing that value depends on both scarcity and utility (something needs to be scarce and have utility to have value). So this option is true.

Answer:

B. It was first explained by Adam Smith in his famous book The Wealth of Nations.
C. It was not resolved until it was realized that something had to be scarce and have utility in order to have value.