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Question
Define utility.
Solution
Utility is the satisfaction derived from the consumption of a particular good in the market. Let us consider any two bundles. If one is preferred to the other, then the preferred bundle gets assigned a higher utility. If the two bundles are indifferent, then they are assigned the same utility number.
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RELATED QUESTIONS
What is 'ordinal' utility?
Give reason or explain the following statement:
Utilly is ethically neutral.
Fill in the blank with appropriate alternative given in the bracket:
_________________ is the power of commodity to fulfill human wants.
(b) marginal utility
(c) place utility
(d) total utility
Give reasons or explain the following statements:
Utility means not usefulness.
Fill in the blank with appropriate alternatives given below :
_________________ refers to want satisfying power of a commodity.
Match the columns:
| Column “A” | Column “B” |
| 1. Marginal utility | a. Maximum TU |
| 2. Point of satiety | b. Assumption of law of DMU |
| 3. Form utility | c. Utility from last unit |
| 4. Cardinal measurement | d. Exemption of law of DMU |
| 5. Service utility | e. Furniture from wood |
| f. Knowledge by teacher | |
| g. Minimum TU |
State the following statement is True or False:
Utility depends upon intensity of want.
State the following statement is True or False:
Utility is the basis of demand.
Give reason or explain:
Utility is a subjective concept.
Give reason or explain:
Utility and happiness are different.
Give reason or explain the following.
Utility and satisfaction are different concepts.
