Which of These Best Sums Up Informed Judgment Forecasts

question 166

Multiple Choice

Which of these best sums up informed judgment forecasts?

• A) Very costly
• B) As reliable as any other technique
• C) Generally unreliable
• D) Fast and inexpensive
• E) The most accurate

---

Definitions:

Utility Maximization

The process by which consumers adjust their consumption to achieve the highest level of satisfaction from their available resources.

Marginal Utility

The incremental pleasure or advantage obtained by consuming an extra unit of a good or service.

Price Ratio

The ratio or comparison between the prices of two different goods or services.

Diamond/Water Paradox

A paradox highlighting the contradiction between the high value of items with little utility (diamonds) and the low value of items with great utility (water), illustrating the difference between total and marginal utility.