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Question
What is 'ordinal' utility?
Solution
Ordinal utility means the measurement of utility in terms of satisfaction derived from the consumption of one good compared to another good. Cardinal utility can be measured in terms of units, but ordinal utility can rank a different level of satisfaction from the consumption of goods.
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RELATED QUESTIONS
Define 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.
