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, meaning it varies from person to person and cannot be precisely measured. Therefore, statement A and B are incorrect. Statement C is also incorrect as utility can be measured for both goods and services. Statement E is irrelevant as utility is useful regardless of scarcity.

Which of the Following Statements Concerning Utility Is Correct