[amp_mcq option1=”Both (A) and (R) are true” option2=”(A) is true but (R) is false” option3=”Both (A) and (R) are false” option4=”(R) is true but (A) is false” correct=”option2″]
The correct answer is: B. (A) is true but (R) is false
Assertion (A) is true. Utility is the want-satisfying power of a commodity. It is a measure of the satisfaction that a consumer derives from consuming a good or service.
Reason (R) is false. Utility can have the characteristic of morality codes. For example, a person may derive utility from donating to charity, which is a moral act.
Here is a more detailed explanation of each option:
A. Both (A) and (R) are true
This option is incorrect because (R) is false. Utility can have the characteristic of morality codes. For example, a person may derive utility from donating to charity, which is a moral act.
B. (A) is true but (R) is false
This option is correct because (A) is true and (R) is false. Utility is the want-satisfying power of a commodity, but it does not have to be a moral act.
C. Both (A) and (R) are false
This option is incorrect because (A) is true. Utility is the want-satisfying power of a commodity.
D. (R) is true but (A) is false
This option is incorrect because (A) is true and (R) is false. Utility is the want-satisfying power of a commodity, but it does not have to be a moral act.