10 Questions
What is utility in the language of economics?
Utility refers to the satisfying power of a commodity.
What is an example of utility in everyday life?
When we are thirsty, we demand water because we believe that water has the power to quench our thirst.
What is multipurpose utility?
Utility is multipurpose, meaning it can satisfy multiple wants and can be put to several uses.
Why is utility considered a subjective concept?
Utility is subjective and varies from person to person. It depends on an individual's preferences and need.
How is utility relative?
Utility is relative to time and place. The right thing at the right time and place provides the most utility.
What does utility refer to in the language of economics?
The satisfying power of a commodity
What is an example of multipurpose utility?
Electricity
In what way is utility relative?
Relative to time and place
Why is utility considered a subjective concept?
It depends on an individual's preferences and need
What does utility depend on?
An individual's preferences and need
Study Notes
What is Utility?
- Utility refers to the satisfying power of a commodity, which means it fulfills our desires.
- Every commodity possesses utility, which is the ability to satisfy our wants.
Features of Utility
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Multipurpose Utility: Utility can satisfy multiple wants and be used for several purposes.
- Example: Electricity can be used for various purposes.
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Relative Concept: Utility is relative to time and place, meaning the right thing at the right time and place provides the most utility.
- Example: Woolen clothes are useful in cold weather, and raincoats and umbrellas are useful during rainy seasons.
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Subjective Concept: Utility is subjective and varies from person to person.
- It depends on an individual's preferences and needs.
Test your knowledge of utility in economics with this informative quiz. Explore the concept of utility and its importance in understanding consumer behavior and decision-making. Dive into the features and types of utility to enhance your understanding of this fundamental economic concept.
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