Question

Which phrase best describes utility? Utility is a measure of consumer satisfaction. the contribution of a particular good or service to GDP. a measure of how useful a good or service is in acquiring income or wealth for a consumer the amount of money a consumer is willing to pay to gain a given amount of consumption. How do economists measure utility? Economists use surveys to rate the usefulness of goods and services after they are purchased. do not measure utility. It is a hypothetical measure used for modeling behavior use data such as prices and purchase information to measure utility measure utility in a laboratory by analyzing the responses of volunteers.

Answer 1

1.Utility in simple terms is the measurement of satisfaction.

it is the derived satisfaction from consuming any good by the consumer.

it is not related with the GDP or how useful a good and services in acquiring income or wealth .

So the answer is option A.

2.If we talk from the economists  point of view ,then there is a no proper measurement of utility.

it is just hypothetical measure that measures in the utils .

it is measured in two ways by ordinary units and Cardinal unis.

for example if a person being asked how is the tea then he will respond whether hot or cold .

so it is just satisfaction measure and not accurate measure by the economists.

Hence answer is option B