Which of the following statements concerning utility is correct?
A)It is possible to precisely measure the utility an individual receives from consuming a particular good or
Service
B)It is always possible to determine whether Dalene or Juloy gets more utility from consuming two units of the
Same good
C)The utility of goods can be measured while the same is not true for services
D)Utility is a subjective measure of satisfaction an individual receives from consuming a good or service
E)It is only useful if there is no scarcity

Question

Quizplus · Accepted Answer

Utility is a subjective measure of satisfaction an individual receives from consuming a good or service. It cannot be precisely measured or compared across individuals. It is also applicable to both goods and services, not just one or the other. It is also relevant in situations of scarcity, as individuals make choices based on their utility preferences. Therefore, options A, B, C, and E are incorrect.

Which of the Following Statements Concerning Utility Is Correct