Identify the truthfulness of the following statements. I. Ordinal utility gives us information about which basket the consumer prefers and quantitative information about the intensity of the preference.
II) Cardinal utility gives us information about which basket the consumer prefers but not about the intensity of those preferences.
A) Both I and II are true.
B) Both I and II are false.
C) I is true; II is false.
D) I is false; II is true.

Question

Quizplus · Accepted Answer

Ordinal utility only ranks preferences without indicating intensity, while cardinal utility measures the intensity of preferences.

Identify the Truthfulness of the Following Statements