Utility is measured in terms of?a)Centimeterb)Secondsc)Gramd)UtilsCorrect answer is option 'D'. Can you explain this answer?

Question

Answer

It can be seen that utility is measured in numbers that are purely cardinal, rather than ordinal. The numbers used to measure utility (often in a unit called the 'util') is useful only for comparison.

Answer

Utils

Answer

Cardinal utility says that utility can be measured numerically.. it means it's possible to know exactly  the number of units of utility that a commodity or service has  for a consumer. The unit measurements of utility is called 'util'.

Answer

D ) utils

Answer

Utility and its Measurement
Utility refers to the satisfaction or fulfillment that individuals derive from consuming goods or services. It is a subjective concept and varies from person to person. Utility can be measured in terms of utils, which are hypothetical units of satisfaction or pleasure.

Measuring Utility
Utility cannot be directly measured since it is a subjective and psychological concept. However, economists use the concept of utils as a means to indirectly measure and compare utility. Utils are a hypothetical unit of measurement that represents the satisfaction or pleasure derived from consuming a particular good or service.

Alternative Units of Measurement
While utility is measured in terms of utils, the options provided in the question are centimeters (cm), seconds (s), and grams (g). Let's understand why these options are not appropriate for measuring utility:

a) Centimeters (cm): Centimeters are a unit of measurement for length, and they cannot be used to measure utility since utility is not a physical quantity that can be measured in terms of distance or size.

b) Seconds (s): Seconds are a unit of measurement for time, and they also cannot be used to measure utility. Utility is not related to time or duration but rather represents the satisfaction or pleasure derived from consuming goods or services.

c) Grams (g): Grams are a unit of measurement for weight or mass. Like the previous options, grams cannot be used to measure utility since utility is not a physical quantity that can be measured in terms of weight or mass.

Correct Answer: Utils
The correct answer is option 'D' - Utils. As mentioned earlier, utils are a hypothetical unit of measurement that represents the satisfaction or pleasure derived from consuming goods or services. While utility itself cannot be directly measured, utils provide a way to compare and analyze the relative levels of satisfaction among different individuals or consumption choices.

By using the concept of utils, economists can make assumptions and predictions about consumer behavior, preferences, and decision-making based on the level of utility derived from different goods or services. This allows for the development of economic theories and models that aim to understand and explain consumer choices and market dynamics.

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