[amp_mcq option1=”Value in use” option2=”Value in exchange” option3=”Both of above” option4=”None of above” correct=”option4″]
The correct answer is: D. None of above
Total utility is the total satisfaction that a consumer gets from consuming a good or service. It is measured by the marginal utility of each additional unit consumed. The marginal utility of a good or service is the additional satisfaction that a consumer gets from consuming one more unit of that good or service.
Value in use is the usefulness of a good or service. It is the satisfaction that a consumer gets from using a good or service. Value in exchange is the price that a consumer is willing to pay for a good or service. It is the amount of money that a consumer is willing to give up in order to obtain a good or service.
Total utility is not measured by either value in use or value in exchange. Total utility is measured by the marginal utility of each additional unit consumed.