A utility function
A) needs to measure the absolute level of happiness.
B) needs to measure relative amounts of happiness for a single individual.
C) helps compare the relative happiness of two separate consumers.
D) is most useful if it can be influenced by others.

Question

Quizplus · Accepted Answer

A utility function is designed to measure the relative amounts of happiness or satisfaction for a single individual, allowing for the comparison of different bundles of goods or choices for that individual.

A Utility Function