[amp_mcq option1=”Cardinal concept” option2=”Ordinal concept” option3=”Indeterminate concept” option4=”None of the above” correct=”option2″]<\/p>\n
The correct answer is: B. Ordinal concept<\/strong><\/p>\n Utility is a measure of satisfaction or pleasure that a consumer derives from consuming a good or service. In marginal utility analysis, utility is assumed to be an ordinal concept, which means that it can be ranked but not measured. This means that we can say that one good gives us more utility than another, but we cannot say by how much.<\/p>\n Cardinal utility is a measure of satisfaction or pleasure that a consumer derives from consuming a good or service. In cardinal utility analysis, utility is assumed to be a cardinal concept, which means that it can be measured. This means that we can say that one good gives us 10 units of utility and another good gives us 20 units of utility.<\/p>\n Ordinal utility is more realistic than cardinal utility because it is difficult to measure utility. However, cardinal utility is more useful for economic analysis because it allows us to make more precise predictions.<\/p>\n Indeterminate concept is not a valid option.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Cardinal concept” option2=”Ordinal concept” option3=”Indeterminate concept” option4=”None of the above” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-43985","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n