Why it is tough to measure utility? – InterviewSolution

InterviewSolution

1.	Why it is tough to measure utility?
Answer» It is tough to measure utility because it is based on psychological facts. The utility received by the consumption of commodity X can be different from the utility received by the consumption of commodity Y. Utility varies from place to place, time to time and person to person. It is conditionable.

Discussion

No Comment Found

Related InterviewSolutions

Indifference means: (a) X is given preference on Y (b) Y is given preference on X (c) Both X and Y are similar preferences (d) None of these
Diminishing marginal utility principle propounded by : (a) Marshall (b) Gossen (c) pigou (d) Edgeworth
If the marginal utility of goods is negative then the total utility is : (a) declining (b) increasing (c) constant (d) zero
Utility in marginal utility theory is : (a) ordinal utility (b) cardinal utility (c) both (d) None of these
Define marginal rate of substitution.
Capacity of fulfillment of requirement of goods is called : (a) Productivity (b) Utility (c) Ability (d) Satisfaction
Write the mathematical form of budget line.
Prof. J.R. Hicks and Prof. J.D. Allen propounded the cardinal approach in the form of alternative analysis :(a) in 1934(b) in 1935(c) in 1835(d) in 1834
Attribute of utility is : (a) it changes from commodity to commodity (b) it changes from time to time (c) it changes from person to person (d) All of these
Why is indifference curve convex to origin?