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An O Henry Short Story Tells About a Young Married Couple

Question 85

Multiple Choice

An O. Henry short story tells about a young married couple, quite poor, facing Christmas without the means to buy each other gifts. So without her knowing, he sells his watch tobuy a comb for her lovely hair and at the same time without him knowing, she cuts her lovely hair and sells it to buy a fob for his watch. To an economist, this touching storytells us


A) that without complete and open information, utility cannot be maximized
B) total utility is not always greater than marginal utility
C) the law of diminishing marginal utility does not apply in all cases
D) the marginal utility of the comb for her was greater than the marginal utility of his watch and for him, the marginal utility of the fob was less than the marginal utility of the comb
E) the marginal utility of the comb for him was greater than the marginal utility of his watch and for her, the marginal utility of her hair was less than the marginal utility of the fob

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