In prisoner of war camps, as described in the Case in Point, economists would expect to find:
A) the law of diminishing marginal doesn't hold.
B) trade prohibited by the lack of money to facilitate exchange.
C) that each prisoner consumes all the rations given to them by their captors.
D) none of the above.

Question

Quizplus · Accepted Answer

None of the options given are correct. Economists would expect to find that the prisoners are maximizing their utility given the constraints they face, which could include rationing and limited opportunities for trade. The law of diminishing marginal utility still applies, but the magnitude of the decrease in utility may be different due to the unique circumstances in the prisoner of war camp.

In Prisoner of War Camps, as Described in the Case