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Question
Give reason or explain:
Utility is a subjective concept.
Solution
Utility is 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. That is, a consumer defines a utility for himself. For example, a commodity, say apples, provides different levels of satisfaction to different persons. Also, the same person can derive different levels of satisfaction from the consumption of apples, at different points of time for example,at the time of illness,the apples may provide a higher level of satisfaction to the consumer.
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RELATED QUESTIONS
Define utility.
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 and happiness are different.
Give reason or explain the following.
Utility and satisfaction are different concepts.
