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Question
Choose the correct answer :
The capacity of a commodity to satisfy human want is known as _________.
Options
(a) Need
(b) Utility
(c) Satisfaction
(d) Production
Solution
The capacity of a commodity to satisfy human want is known as utility.
Explanation:
Utility refers to the capacity or the power of a commodity to satisfy human wants. It is an ethically neutral concept as it does discriminate between commodities.
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