When an Economist Talks About Utility, She Is Talking About

question 19

Multiple Choice

When an economist talks about utility, she is talking about

• A)a company that provides electricity, water, gas, etc.
• B)the satisfaction, in terms of price, that a producer receives from selling his product.
• C)the satisfaction that results from the consumption of a good.
• D)the amount of one good that a person is willing to give up in order to get a unit of another good.
• E)the satisfaction that results from the consumption of a good minus the price that must be paid to get the good.

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Definitions:

Actual Output

Actual output is the real quantity of goods or services produced by a company or economy, as opposed to planned or theoretical outputs.

Standard Costing

A cost accounting method that assigns fixed overhead costs to goods produced based on standard cost rates, helping to analyze variances between expected and actual costs.

Direct Labour Hours

The total hours worked by production employees that are directly involved in the manufacturing process.