[amp_mcq option1=”law of maximum satisfaction” option2=”utility cannot be measured in cardinal numbers” option3=”utility could not be measured in ordinal numbers” option4=”utility can be measured” correct=”option2″]<\/p>\n
The correct answer is: B. utility cannot be measured in cardinal numbers.<\/p>\n
Ordinal utility is a concept in economics that states that individuals can rank their preferences for different goods and services, but they cannot assign precise numerical values to those preferences. This means that it is impossible to say that one good or service provides twice as much utility as another good or service.<\/p>\n
Cardinal utility, on the other hand, is a concept that states that individuals can assign precise numerical values to their preferences for different goods and services. This means that it is possible to say that one good or service provides twice as much utility as another good or service.<\/p>\n
The ordinal approach to utility is based on the idea that individuals can rank their preferences for different goods and services, but they cannot assign precise numerical values to those preferences. This means that it is impossible to say that one good or service provides twice as much utility as another good or service.<\/p>\n
The cardinal approach to utility, on the other hand, is based on the idea that individuals can assign precise numerical values to their preferences for different goods and services. This means that it is possible to say that one good or service provides twice as much utility as another good or service.<\/p>\n
The ordinal approach to utility is often used in economics because it is more realistic than the cardinal approach. In reality, it is very difficult for individuals to assign precise numerical values to their preferences for different goods and services. The ordinal approach to utility is also more flexible than the cardinal approach. It can be used to analyze a wider range of economic problems.<\/p>\n
The cardinal approach to utility is sometimes used in economics, but it is less common than the ordinal approach. The cardinal approach to utility is more difficult to use than the ordinal approach, and it is not always necessary. The cardinal approach to utility is also more controversial than the ordinal approach. Some economists believe that it is impossible to assign precise numerical values to people’s preferences.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”law of maximum satisfaction” option2=”utility cannot be measured in cardinal numbers” option3=”utility could not be measured in ordinal numbers” option4=”utility can be measured” 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-48083","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n