In economics, interpersonal comparisons of utility
A) are widely accepted as useful and accurate to determine market demand
B) are widely accepted as useful and accurate to determine consumer surplus
C) can be measured accurately by using the hypothetical unit of utils
D) are generally avoided because we cannot compare with complete confidence the utility one person derives from a dollar to the utility another person derives from a dollar
E) are widely accepted as useful and accurate because consumers have similar utility preferences

Question

Quizplus · Accepted Answer

Interpersonal comparisons of utility are generally avoided in economics because it is difficult to accurately compare the utility or satisfaction that different individuals derive from consuming goods or services. This is due to the subjective nature of utility, which varies significantly from one person to another based on personal preferences, needs, and circumstances.

In Economics, Interpersonal Comparisons of Utility