When economists describe preferences, they sometimes use the concept of:
A)income
B)prices
C)markets
D)utility

Question

Quizplus · Accepted Answer

Economists use the concept of utility to describe preferences, which refers to the satisfaction or happiness a person derives from consuming a good or service. Utility is a subjective measure and can vary from individual to individual. Understanding individuals' utility functions is important for understanding how they make choices and allocating resources in the most efficient way possible.

When Economists Describe Preferences, They Sometimes Use the Concept Of