Utility measurements are:
A) a relative ranking of how much different people enjoy a particular good.
B) used to compare one person's preference for a good to another person's preference.
C) a relative ranking of the satisfaction a person gets from alternative combinations of things.
D) None of these is true.

Question

Quizplus · Accepted Answer

Utility measurements are a way to compare the satisfaction or benefit that an individual gets from different choices or combinations of goods. They are based on subjective preferences and cannot be compared between individuals, so option A and B are not true. Option D is incorrect as well, as utility measurement is a fundamental concept in economics.

Utility Measurements Are