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प्रश्न
What are the characteristics of utility?
Write a short answer to the following question:
What are the characteristics of utility?
उत्तर
The following are the characteristics of utility:
- Relative concept - Utility is a relative concept as it differs from time to time and from place to place. For instance, woollen clothes have more utility in winter and less in summer. Similarly, woollen clothes have more utility in Kashmir than in Jaipur.
- Subjective concept - Utility refers to the satisfaction that a consumer expects to derive from the consumption of a particular good. It is a subjective concept as it varies from person to person and from time to time. A consumer himself defines the utility derived from the consumption of a good.
- Ethically neutral - Utility is said to be ethically neutral as it does not discriminate between commodities on the basis of characteristics such as good, bad, moral, immoral etc. This implies that a commodity may provide utility even when it is socially undesirable.
- Utility and usefulness are different - Utility and usefulness are two different concepts. Utility means the satisfaction derived from the consumption of a good. On the other hand, usefulness is the benefit obtained from the commodity.
- Utility is not the same as pleasure - Utility does not imply pleasure. That is, it is not necessary that a commodity that has utility will always provide pleasure or happiness to the consumer.
- Utility is different from satisfaction - While utility refers to the want satisfying capacity of a commodity, satisfaction is an expression of the feeling of happiness. Moreover, utility is the anticipated level of satisfaction, while satisfaction is actually realised by the consumer.
- Utility is not easily measurable - Utility is difficult to measure in terms of numbers cardinal measurement. It is a psychological concept, as it cannot be seen or touched, but can only be experienced.
- Depends upon the intensity of want - This means that the utility derived from the consumption of a commodity depends upon the intensity of want for that commodity. The greater the intensity of want, the greater the utility derived from the consumption of the commodity.
- It is the basis of demand - Demand for a commodity is based on the utility derived from it. A person will demand a commodity only if it gives him/her some satisfaction or utility, otherwise, it will not be demanded.
संबंधित प्रश्न
Identify and explain the concept from the given illustration:
Bhushan refused to eat fifth chapati after eating four chapatis.
Identify and explain the concept from the given illustration:
Lalita satisfied her want of writing an essay by using pen and notebook.
Toys made of clay: ______:: Woollen clothes : place utility
Aggregate utility from all units consumed : Total utility :: Additional utility from last unit consumed : ______.
Utility that arises when ownership of goods is transferred from one person to another −
Find the odd word
Types of utility -
Assertion (A): Utility depends on the intensity of want.
Reasoning (R): The concept of utility has no ethical consideration.
Identify & explain the concept from the given illustration.
Rohan created a jewellery box out of pieces of wood.
Explain any four types of utility
Explain any four features of utility.
Questions:
- When Total utility increases Marginal utility ______ (1m)
- Name the unit where consumer will be derived disutility_______ (1m)
- When the total utility is maximum, the marginal utility is____(1m)
- Name the unit where consumer will derive maximum satisfaction__ (1m)
State with reason whether you agree or disagree with the following statement:
Utility and satisfaction are one and the same.
- Assertion (A): Utility has an inverse relation with the intensity of want.
- Reasoning (R): A hungry individual finds more utility in food than a person who is not so hungry.
- Assertion (A): Utility can be measured cardinally.
- Reasoning (R): Utility is a psychological concept.
Complete the correlation:
Poison : ______ : : Buttermilk : Usefulness.
Give an economic term:
Want satisfying capacity of a commodity.
