Which one of the following statements is incorrect?
Understand the Problem
The question is asking to identify which statement among the given options is incorrect regarding consumer equilibrium and utility. It addresses concepts related to economics and consumer behavior.
Answer
Inter-personal comparisons of utility are generally considered incorrect.
The statement 'It is possible to make inter-personal comparisons of utility, that is, it is possible to compare the utility derived by two different consumers from the consumption of the same product (eg beef).' is incorrect.
Answer for screen readers
The statement 'It is possible to make inter-personal comparisons of utility, that is, it is possible to compare the utility derived by two different consumers from the consumption of the same product (eg beef).' is incorrect.
More Information
In economics, it's traditionally acknowledged that utility is subjective and varies from person to person, making direct comparisons challenging.
Tips
A common mistake is assuming utility can be universally measured or compared across different individuals.
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