Which of the following statements is true about utility?
A) Economists measure utility with a unit they refer to as an utte.
B) Everyone receives different levels of satisfaction from the same good or service.
C) All products produce the same level of utility.
D) Everyone receives the same level of satisfaction from the same good or service.
E) Utility is easy to measure across individuals.

Question

Quizplus · Accepted Answer

Utility is a measure of the satisfaction or happiness a consumer receives from consuming a good or service. It is subjective and varies from person to person. Therefore, it is true that everyone receives different levels of satisfaction from the same good or service. Option A is incorrect because economists measure utility in utils, not uttes. Option C is incorrect because different products or services generate different levels of utility. Option D is incorrect because utility is subjective and varies from person to person. Option E is incorrect because utility is difficult to measure across individuals since it is subjective.

Which of the Following Statements Is True About Utility