Why Do We Say That the Utility Theory Has Ordinal

question 62

Multiple Choice

Why do we say that the utility theory has ordinal utility?

• A)It is designed to study relative satisfaction levels.
• B)It cannot be explained without the expected utility theory.
• C)It dictates that people should behave in the manner prescribed by it.
• D)It can represent the absolute level of satisfaction.
• E)It does not base its beliefs upon individuals' preferences.

---

Definitions:

Minor

A person who is below the age of majority, legally considered a child and, in many contexts, does not have the full legal rights of an adult.

Public Policy

The public good; some acts, although not illegal, will not be enforced by the courts because they are socially distasteful (against public policy).

Legal Capacity

The ability of an individual or entity to enter into legally binding contracts, including being of a certain age and sound mind.

Mental Incapacity

Refers to a condition where an individual is unable to make legal decisions due to cognitive or psychological impairments.