Ecom
College of Administrative and Financial Sciences
Assignment-1
Deadline: 30 September 2020 @23:59
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Course Name: MICROECONOMICS |
Student’s Name: |
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Course Code: ECON101 |
Student’s ID Number: |
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Semester: 1 |
CRN: 10045 |
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Academic Year: 1441-1442 |
For Instructor’s Use only
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Instructor’s Name: Dr. Samreen Akhtar |
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Students’ Grade: Marks Obtained/ 5 |
Level of Marks: |
Instructions – PLEASE READ THEM CAREFULLY
· This Assignment must be submitted on Blackboard (WORD format only) via the allocated folder.
· Email submission will not be accepted.
· You are advised to make your work clear and well-presented; marks may be reduced for poor presentation. This includes filling your information on the cover page.
· Assignment will be evaluated through BB Safe Assign tool.
· Late submission will result in ZERO marks being awarded.
· The work should be your own, copying from students or other resources will result in ZERO marks.
· Use Times New Roman font 12 for all your answers.
Critical Thinking 1: The diamond-water paradox
In “An Inquiry into the Nature and Causes of the Wealth of Nations” published in 1776, Adam Smith wrote:
“Nothing is more useful than water: but it will purchase scarcely anything… A diamond, on the contrary, has scarcely any use-value; but a very great quantity of other goods may frequently be had in exchange for it”
Explain the diamond-water paradox and find out in the literature how economists have later solved this paradox.
ANSWER: