I read this in high school and years later in university learned economists named this concept 'marginal utility.'
It's an important concept to understand in many aspects of life. In social and economic policy, it's important to remember resources are allocated per marginal utility, not by what they're worth. I.E. water is worth more to me than music, but I spend more money on music than water, and the music industry makes more than public water utilities. Seems obvious when stated like that, but it's often forgotten I find.
It's an important concept to understand in many aspects of life. In social and economic policy, it's important to remember resources are allocated per marginal utility, not by what they're worth. I.E. water is worth more to me than music, but I spend more money on music than water, and the music industry makes more than public water utilities. Seems obvious when stated like that, but it's often forgotten I find.