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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.

Directions:

Your essay is required to be two to three pages in length, which does not include the title page and reference pages, which are never a part of the content minimum requirements.

Support your submission with course material concepts, principles, and theories from the textbook and external reliable sources. Use the Saudi Digital Library to find your resources.

Use Saudi Electronic University academic writing standards.

The assignment is graded ZERO if Plagiarism percentage exceeds 20%.

Review the grading rubric to see how you will be graded for this assignment.

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